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Exclusionary Criteria

Guiding Your Investments: Understanding and Compliance with Exclusionary Criteria

When making investments, it is crucial to know not just where to invest, but also where not to. Our indicative Taxonomy provides clear exclusionary criteria, helping you make responsible and ethical investment choices. These criteria are divided into two categories: by sector and by character.

Exclusionary Criteria by Sector:

Avoiding Harmful Arms and Weapons: We exclude investments in businesses involved in the manufacture or sale of heavy weapons, ammunition, chemical weapons, mines, or small arms.

Steering Clear of Illicit Drugs: Any investment that supports the manufacture of drugs not permitted by legal and international regulations is off-limits.

Protecting Natural Forests: We do not invest in agricultural or afforestation activities on land that is primary forest, in high conservation value areas, or legally protected zones.

Exclusionary Criteria by Character:

Upholding International Humanitarian Law: Investments that breach the Geneva Conventions and their additional protocols are strictly prohibited.

Respecting Human Rights and Labour Standards: We avoid investments in activities that cause human rights violations, breach labour standards, or are associated with corruption.

Preventing Exploitation: Any investment linked to slavery, child labour, human trafficking, or sexual exploitation is excluded.

Avoiding Companies with Major Criminal Activities: We do not invest in companies involved in significant criminal activities, whether related to environmental, social, governance, or other areas.

Exclusionary Criteria by other Environmental and Social Considerations:

In line with the European DFI Principles for Responsible Financing of Sustainable Development, our approach to peace-positive and conflict-sensitive investing extends to protecting High Conservation Value (HCV) areas. These areas are not just natural habitats; they are vital ecosystems that play a crucial role in the well-being of local communities.

1
Protecting High Conservation Value Areas: HCV areas are defined as natural habitats that are essential for environmental health and biodiversity. Our exclusionary criteria include the protection of these areas, recognizing their importance in maintaining ecological balance.
2
Acknowledging the Role of Natural Resources: We understand that natural resources are not just environmental assets but are also deeply intertwined with the livelihoods and cultures of local communities. Our investment criteria take into account the significance of these resources to the people who depend on them.
3
Understanding the Ecological-Social Connection: In conflict-sensitive investments, it is crucial to recognize the link between ecological landscapes and the broader social context. Our criteria reflect this understanding, ensuring that investments do not disrupt this delicate balance.
4
Ensuring Peace and Sustainability: By considering the impact of investments on natural resources and local communities, we align our financial decisions with the goal of fostering peace and sustainable development. This approach underlines the importance of environmental stewardship as a key component of peace-oriented investments.
Investing with Integrity

These criteria are designed to guide you in making investments that align with ethical standards and contribute positively to society and the environment. By adhering to these exclusionary criteria, you can ensure that your investments reflect your values and commitment to a better world.

© Finance for Peace 2023