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Investment approach - How we invest

A rigorous process that ensures sustainable success

Our SRI funds invest only in companies that achieve a best-in-class combination of social, environmental and economic performance.

We select these companies on the basis of strict social, environmental and governance criteria, and a rigorous research and selection process that provides a firm foundation for every investment decision.

Research and consultation

We have our own Sustainability Research Department, responsible for keeping us up to date with the latest thinking on sustainability issues, monitoring legislative and regulatory developments, and ensuring that our investment selection process is based on the most relevant and reliable information available.

In addition, to give us a broader perspective on what are often very complex issues, we have regular contact with leading international experts, representing various interest and stakeholder groups.

A three stage selection process

Selecting listed companies for inclusion in the Triodos Investment Universe is a rigorous and systematic process. To ensure they meet our social and environmental requirements, companies are screened against a wide range of criteria, in a three stage process:

A three stage investment selection process

Step 1: Sustainable activities

We've identified certain types of products and services that contribute to the health and wellbeing of people and planet. Any company that derives over 50% of its revenues from sustainable activities of this kind qualifies for Triodos investment, provided they also pass
step 3.

Step 2: Best-in-class

Companies that don't meet the step 1 criteria above can still qualify for investment if their all-round sustainability performance puts them among the best in their sector. We assess this using over 70 generic and sector-specific criteria, relating to environmental, social and governance issues. And companies whose score puts them in the top 50% within their sector qualify for Triodos Investment Universe, provided they also pass step 3.

Step 3: Minimum standards

Our minimum standards are Triodos Bank's bottom line: the absolute criteria we apply to ensure that we never fund any business engaged in any harmful activities. Companies that qualify through steps 1 or 2 must also meet these requirements before we'll consider investing in them.

Once companies have passed step 3, they are added to the Triodos sustainable universe. The actual investment decisions are made by our external asset manager. From our sustainable universe the external asset manager carefully selects the companies that are considered to have the best financial forecasts.

Find out more

For more information on our Socially Responsible Investment process and criteria, you can download the PDF documents below.

Downloads

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