Nucleus Wealth’s ethical screening definitions

Removes the worst polluters, in particular, companies that use Lignite coal or create oil from Tar Sands.

Sources: Sustainalytics, S&P Capital IQ, SNL and company presentations.

Removes companies where more than 10% of the company is involved in coal, oil or gas.

Sources: GICS sector is used as the initial screen, also sustainalytics, S&P Capital IQ, SNL and company presentations.

Removes companies who are involved in Coal Seam Gas extraction and fracking

Sources: GICS sector is used as the initial screen, also sustainalytics, S&P Capital IQ, SNL and company presentations.

Removes companies with Nuclear power stations or producers of Uranium

Sources: GICS sector is used as the initial screen, also sustainalytics, S&P Capital IQ, SNL and company presentations.

Remove companies that are involved with logging Old Growth Forests

Sources: include sustainalytics, S&P Capital IQ, SNL and company presentations.

Removes companies that are known to produce cluster munitions and landmines.

Sources: Sustainalytics, S&P Capital IQ, SNL and company presentations.

Removes companies that are known to directly produce weapons or ammunition

Sources: Sustainalytics, S&P Capital IQ, SNL and company presentations.

Removes companies that are known to produce Nuclear Weapons

Sources: Sustainalytics, S&P Capital IQ, SNL and company presentations.

Removes companies from countries that score below 7 on the Democracy Index (from the Economist Intelligence Unit). Note this category removes some countries that are rated as Flawed Democracies like Singapore, Hong Kong or Brazil. Also removes companies where more than 20% of the company is owned by a government organization from a country that rates below 7.

Sources: Economist Intelligence Unit

Removes companies from countries that rate either “Repressed” or “Mostly Unfree” as assessed by the Index of Economic Freedom (Wall Street Journal and the Heritage Foundation). Also removes companies where more than 20% of the company is owned by a government organization from a country that is Repressed or Mostly Unfree.

Sources: Wall Street Journal

Removes companies from countries that are not either “Free” or “Mostly Free” as assessed by the Index of Economic Freedom (Wall Street Journal and the Heritage Foundation). Note that this category removes many European Countries like Spain or France – the “worst offenders” version does not. Also removes companies where more than 20% of the company is owned by a government organization from a country that is not free or mostly free.

Sources: Wall Street Journal and the Heritage Foundation

Removes companies from countries that rate “Insufficient Moral Freedom” or below as assessed by the World Index of Moral Freedom. Note this category removes countries like Singapore, South Korea or China. Also removes companies where more than 20% of the company is owned by a government organization from a country that has low or very low moral freedom. Religious freedom, bioethical freedom, drugs freedom, sexual freedom, and family and gender freedom are assessed.

Sources: Wall Street Journal and the Heritage Foundation

Removes companies from countries that score below “High Moral Freedom” on the World Index of Moral Freedom. Note this category removes countries like Japan, Singapore, South Korea or China. Also removes companies where more than 20% of the company is owned by a government organization from a country that rates poorly.

Sources: World Index of Moral Freedom is sponsored and published by the Foundation for the Advancement of Liberty.

Removes companies involved in immigration detention centres.

Sources: Sustainalytics, S&P Capital IQ, SNL and company presentations.

Removes companies involved in running jails

Sources: Sustainalytics, S&P Capital IQ, SNL and company presentations.

Removes companies that have less than 10% of their board or board + top 5 executives being female.

NOTE: This will remove many Japanese stocks from your portfolio.

Sources: Nucleus source data from Capital IQ on board and senior management. We use this to calculate which companies meet this criteria.

Removes companies that have less than 20% of their board or board + top 5 executives being female.

NOTE: This will remove many Japanese stocks from your portfolio.

Nucleus source data from Capital IQ on board and senior management. We use this to calculate which companies meet this criteria.