Step 1: Companies with involvement in the following activities are excluded:
- Embryonic stem cell research
- Cloning
- Production of pornography
- Production of abortifacients
- Child labour
- Anti-Christian organisations
Step 2: Companies which derive 5% or more of their income (as determined by the Fund’s SRI Research Provider) from the following activities are excluded:
- Gambling
- Alcohol
- Tobacco
- Fast Food production
- Weapons manufacturing
Step 3: (Australian companies only) Remaining companies are ranked by the Fund’s SRI Research Provider according to the following factors:
- Commands (eg compliance with legislation, human rights, waste production, renewable energy)
- Character (eg equal opportunity, corporate governance, social responsibility)
- Consequences (eg environmental stewardship)
Companies are excluded, in addition with the above exclusions, to the point where 10% of the Australian Shares universe is excluded. This 10% is then allocated to the highest scoring companies in the ranking.
In step three, the rankings are derived from a wide range of factors, which may be broadly characterised into the following groups:
| Factor | Proportion |
|---|---|
| Environmental Considerations | 53.1% |
| Corporate Governance | 33.3% |
| Workplace Practices | 6.3% |
| Corporate Financial Practice | 4.2% |
| Involvement in Animal Testing | 3.1% |
