Norms-based screening

    ESG & Governance

    Excluding companies that seriously breach widely accepted international norms, such as the UN Global Compact principles on human rights, labour, environment and anti-corruption.

    Norms-based screens rely on controversy research to find companies involved in severe misconduct. Some indices, such as the BSE 100 ESG Index, remove companies rated non-compliant with the UN Global Compact. The screen targets behaviour, not sectors, so a company can be excluded and later readmitted if it fixes the problem.

    Related terms