Chapter 08 · Finance, data & evidenceSustainable Finance & Investment
Positive screening
Definition
Positive screening is the selection or weighting of investments based on favourable sustainability characteristics or performance.
References
This reference provides supporting context for how “Positive screening” is defined and used.
Overview
What it means in practice
Positive screening should be read as a sustainable-finance term. Its meaning depends on the instrument, mandate, strategy, disclosure rules and evidence of use or outcome.
In practice, users should state the boundary, method, instrument and evidence. That keeps positive screening specific enough for review without turning it into a broader claim.
Why it matters
Positive screening matters because finance labels can shape capital allocation and public claims. Clear wording helps distinguish strategy, eligibility, proceeds, targets and real-world outcomes.
Common misconception
A common error is to treat Positive screening as a single investment philosophy. The stronger approach is to state the objective, method, exclusions, stewardship approach and evidence.
Review questions
What instrument, boundary or method gives the term meaning? What evidence supports it? What limitation would change how a reader interprets the claim?
How it is used
Investors, lenders, analysts, data providers and sustainability teams use “Positive screening” in capital allocation, risk assessment, measurement, valuation, due diligence and performance analysis. In each case, the user should state the calculation method, data provenance, assumptions, boundary and decision purpose; otherwise, the same term may be applied to materially different situations.
In this context, it refers to the selection or weighting of investments based on favourable sustainability characteristics or performance.