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.
Applying a rigorous research and selection process that provides a firm foundation for every investment decision, we select these companies on the basis of strict social, environmental and governance criteria.
Research and consultation
Triodos Research is responsible for keeping us up to date with the latest thinking on sustainability issues. It also monitors legislative and regulatory developments, and ensures that our 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
To ensure companies meet our social and environmental requirements, analysts from Triodos Research screen them in three steps against a wide range of criteria:
Step 1: Sustainable activities
We have 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
A company that does not qualify in step 1 can still be eligible 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, provided they also pass step 3.
Step 3: Minimum standards
Our minimum standards are the bottom line: the standards we apply to ensure that we do not fund any business engaged in any activities that are harmful to individuals, society or the environment.
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 sustainable universe. The actual investment decisions are made by Delta Lloyd Asset Management based on their market insights and financial expertise.