Norm-based screening is implemented in a number of stages, in which PUBLICA is assisted by the Swiss Association for Responsible Investments SVVK-ASIR. The Association, which was founded in December 2015 by PUBLICA and six other major investors, has since been joined by further large investors. Its aim is to support them in the implementation of their sustainability strategy.
- Filtering: PUBLICA’s entire equity and corporate bond universe is filtered for compliance with the normative basis.
- Analysis: Companies identified as potentially problematic during the screening process are subjected to more detailed analysis in order to determine the severity of the violations of Swiss law or international norms.
- Dialogue: A process of dialogue is initiated with companies that are classified as problematic, though only with those where the prospect of a positive change in their conduct is deemed strong.
- Exclusion: Companies whose core business violates international norms or where dialogue has not resulted in any improvement are placed on the exclusion list. The final decision will depend partly on whether exclusion can be implemented technically. Furthermore, it should not result in a substantial deterioration in the risk/return profile of the overall portfolio.