Appendices I-IV
		Notes and references 1. Clerical Medical Evergreen Trust: see Appendix I. Back to article 2. Friends Provident Stewardship: see Appendix II. Back to article 3. Scottish Equitable Ethical Trust: Appendix III. Back to article 4. NPI Global Care Unit Trust: see Appendix IV. Back to article 5. Ethical Financial Ltd. A Guide to Socially Responsible Investment: see Appendix V. Back to article 6. Centre Info; see Appendix VI. Back to article 7. Investor Responsibility Research Center: see Appendix Vll. Back to article 8. Henry Davis SJ, Moral and Pastoral Theology, London: Sheed and Ward l938. Back to article Appendix I: Clerical Medical Evergreen Trust Share selection criteria The Evergreen Trust invests in companies where a major part of their operation is making an important contribution to environmental improvement. If other parts of a company's operation cause damage to the environment, then the company would not be eligible for the portfolio. Evergreen is not an ethical trust in the sense that it does not operate on the basis of eliminating companies involved in specified areas and selecting from the remainder of the universe. However, in practice Evergreen has a number of guidelines similar to ethical trusts as various categories of company should be eliminated in view of the harmful nature of their activities to the environment. The fund manager will seek to avoid companies which are involved in: 1. The production, sale or distribution of fur products 2. The production, sale or distribution of cosmetics where animal testing may be involved 3. The manufacture of ozone depleting chemicals (CFCs and halons) 4. The manufacture or distribution or harmful pesticides 5. The supply of tropical hardwood Other types of companies, which would normally be ineligible for an ethical portfolio, will also be avoided as they are inconsistent with Evergreen's objectives. These are companies which are involved in: 7. The manufacture or provision of armaments 8. Companies involved in repressive regimes to a total extent of more than 10% of group turnover. For this purpose information published by the Ethical Investment Research Service (EIRIS) is used 9. The provision of gambling services 10. The production of tobacco products 11. The production or distribution of pornography Source: Clerical, Medical and General Life Assurance Society, March /995 Back to article Appendix II: Friends Provident Stewardship The positive criteria In seeking to identify companies which make a positive contribution to society, Stewardship pays particular attention to their record in the following areas: Excellence of products and services which are of long term benefit to the community This includes the production and supply of basic necessities such as food, and life-saving or life-enhancing products such as medicines or safety equipment. A record of high quality, reliability and good value is also taken into account Conservation of energy or natural resources This includes the conservation of natural resources such as woodlands and forests. Evidence for this includes written confirmation that a company has a policy of not using or supplying tropical hardwood or tropical hardwood products. This criterion extends to the avoidance of ozone depleting chemicals or their use in products and processes. Environmental improvements and pollution control Examples include the sponsoring of major conservation projects. and the publishing of an environmental policy statement or an independent environmental audit report in the past three years. Good relations with customers and suppliers This criterion includes a company's approach to customers and suppliers and extends to its relationship with the general public. High employee welfare standards This covers a company's general approach to the management of its staff, including the terms and conditions of employment. It also includes the provision of training or education resources to external bodies or individuals. Strong community involvement Examples include charitable donations amounting to at least 1% of UK pretax profits in the most recent financial year, and the provision of products and services on reasonable terms to disadvantaged groups within the community. A good equal opportunities record Evidence for this might include the presence of women and ethnic minorities on the board and in managerial positions, the provision of more than the statutory minimum paid maternity leave, and the provision of careers' benefits such as flexitime, job sharing, career breaks and child-care facilities. Openness about their activities This includes the ability to monitor financial transactions. The negative criteria In identifying companies which harm the world or its people. Stewardship is particularly concerned about the following activities: Environmental destruction This includes activities considered to degrade the environment. such as unacceptable levels of water pollution, destruction of natural woodlands or forests, or the manufacture or distribution of pesticides or ozone-depleting chemicals. Unnecessary exploitation of animals Examples include the fur trade, intensive or factory farming, or the production or processing of meat or meat products where this is a company's main business. This criterion also includes the use of animal testing in the production of cosmetics, soap, toiletries, food additives, medicines, veterinary products, industrial or household chemicals or agrochemicals. Only in the most exceptional circumstances will Stewardship invest in company groups which manufacture products which entail any form of animal testing. Trade with oppressive regimes This includes substantial trade, subsidiary operations or associated interests with or in countries with oppressive regimes. Examples of such regimes are those where Amnesty International has received reports of torture, prisoners of conscience, extrajudicial executions or disappearances, or which have committed frequent official violence against citizens. Pornography Stewardship seeks to distinguish between, on the one hand, published materials of real aesthetic merit which reflect and celebrate the physical and sexual nature of men and women, and on the other hand, clearly offensive portrayals of physical and sexual relationships in which personal caring and human dignity are either absent or insignificant. Weapons manufacture This encompasses contracts of a military nature, including the manufacture or sale of weapons or products with military uses. Tobacco or alcohol production This criterion also extends to the sale of tobacco or alcohol products where the proportion of business attributable to such activity exceeds 10% of total turnover. Unsafe products and services This heading includes significant involvement in the nuclear power industry, such as construction of nuclear power stations or associated plant or equipment, supply or transport of nuclear fuel or uranium ore, and disposal or transport of radioactive waste. Offensive advertising This includes advertising which is clearly deceitful or offensive, as measured by complaints upheld by the Advertising Standards Authority during the previous two years. Other negative criteria relate to gambling. political donations, and marketing to the Third World. Source: Friends' Provident Life Office. May 1995 Back to article Appendix III: Scottish Equitable Ethical Trust Ethical investment criteria The following companies are not currently considered suitable for ethical investment Any company which manufactures armaments or nuclear weapons Any company with subsidiaries or associates in South Africa Any company involved in the production of nuclear fuels. or which supplies the nuclear power industry any political party or organisation Any company which has had repeated public complaints upheld against it by the Advertising Standards Authority in the last two years Any company whose investment in betting shops, casinos, amusement arcades or the fruit machine industry accounts for more than 10% of its total business Any company for which the brewing, distillation or sale of alcoholic drinks accounts for more than 10% of its total business As we are unable to obtain sufficient information on the companies, organisations or institutions to which banks lend money, all banks are excluded Any company which conducts any kind of experiments on animals or which manufactures or sells animal-tested cosmetics or pharmaceuticals Any company for which the growing, processing or sale of tobacco products accounts for more than 10% of its total business Any company which sells animal fur products Any company which has any involvement in the production, processing or sale of meat and poultry products In conjunction with EIRIS, the ethical investment criteria are monitored, reviewed and refined regularly in the light of evolving circumstances. Source: Scottish Equitable Fund Managers Ltd., February 1994 Back to article NB These criteria with the specific reference to South Africa were still being supplied to potential investors in January 1996. Appendix IV: NPI Global Care Unit Trust The Global Care Unit Trust invests in companies according to a number of positive criteria. It also avoids companies operating in some areas which we believe are unacceptable to investors wishing to adopt an ethical strategy. The criteria are classified into three categories. Impact on people Impact on the environment Impact on animals Within these broad categories are a number of specific issues which concern ethical investors. A summary of these is given below Areas of support Areas of avoidance People Community involvement Education and training Health-care services Health and safety Good employee relations Socially progressive relationships Effective corporate governance Policy statements, audits and openness Alcohol Gambling Irresponsible marketing Armaments Oppressive regimes Pornography Environment Energy conservation Mass transit systems Multimedia and telecommunications Pollution control equipment Process control equipment Recycling services Renewable energy Water management Greenhouse gases Mining Nuclear power Ozone layer depleters Pesticides Road builders Tropical hardwood Water polluters Animals Vegetarian foods New textiles Animal testing Fur Meat/dairy Production Source: NPI Investment Managers Ltd., June 1995 Back to article Appendices continued... Table of Contents || The Contributors About the Social Affairs Unit
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