In identifying companies which are regarded as having a positive effect on society and the environment, Standard Life's ethical funds look at whether companies:
Make a positive contribution to the environment
For example:Promote sound employment practices
For example:Promote products and services which benefit the environment or human life
Companies that provide environmental products and services which are of benefit to the community or life-saving and life-enhancing products such as medicines and safety equipment.
Donate to charities or are strongly involved in the community
Companies which demonstrate clear evidence of commitment to community or charitable work, including employee secondment schemes or make gifts in kind to the community.
Have clear polices and procedures on bribery and corruption
Companies which instruct their employees not to support or permit any corrupt practices, such as bribery, in their work for the company.
Have a policy that encourages good principles of business behaviour and ethics
Companies which have adopted a code which encourages employees to follow principles of good business behaviour. This should be published and distributed to all employees and, ideally, to groups outside of the company.
In identifying companies which have a harmful effect on the environment and its inhabitants, Standard Life's ethical funds look at company policies and practices in the following areas:
Environmental damage and pollution - including:
Test products on animals
The funds will avoid investment in companies which manufacture products or ingredients that have been tested on animals by the companies or their suppliers.
Genetic engineering
The funds will avoid investment in companies that carry out genetic engineering of crops, genetic engineering of animals or gene patenting.
Intensive farming
The funds will avoid investment in companies that use intensive farming methods and own or operate fish farms.
Operate in countries which violate the political and civil rights of their people, unless the company's policies address human rights
Companies that operate in two or more countries which are rated poorly by Freedom House, an organisation based in the United States which monitors human rights worldwide, and The Observer Human Rights Index will be avoided, unless they have policies on human rights.
Pornography
Companies that derive more than 3% of turnover publishing or distributing pornographic magazines or newspapers (UK only) or adult entertainment services are avoided.
Produce or sell weapons
Companies that produce or sell weapons, including nuclear weapons, will be avoided.
Process nuclear power
Under this criterion companies that own or operate nuclear power stations will be avoided.
Produce alcohol
The Funds will avoid investment in companies which derive 10% or more of turnover from alcohol production.
Produce tobacco
The funds will avoid investment in companies that manufacture tobacco products.
Are involved in gambling
Companies which derive 10% or more in turnover from involvement in gambling will be avoided by the Funds.
