Skip to main content
Search
Account Access
Mutual Funds
Separate Accounts
Investment Approach
Overview
Investment Criteria
Who We Serve
Private Clients
Partnering with individuals, family offices, and non-profits on values-aligned portfolios.
Financial Intermediaries
Providing advisors impact-driven solutions aligned with clients’ goals.
Institutional
Delivering purpose-driven solutions to consultants and asset owners.
Solutions

Equity Strategies

ESG Global Equity
ESG Core Equity
ESG Large Cap Core
ESG Small/Mid Cap Core
ESG Growth & Income
Sustainable Opportunities

Fixed Income Strategy

US Core Bond

Mutual Funds

Trillium ESG Global Equity Fund
Trillium ESG Small/Mid Cap Fund
Green Century Balanced Fund
John Hancock ESG Large Cap Core Fund

Materials

Product Literature

All Solutions

Solutions Index
About Us
About Trillium
Team
Careers
Advocacy & Public PolicyNewsroom
Contact
Investment Approach
Previous

Investment Approach

OverviewInvestment Criteria
Who We Serve
Previous

Who We Serve

Private ClientsFinancial IntermediariesInstitutional
Solutions
Previous

Solutions

Solutions

ESG Global Equity
ESG Core Equity
ESG Large Cap Core
ESG Small/Mid Cap Core
ESG Growth & Income
Sustainable Opportunities

Fixed Income Strategy

US Core Bond

Mutual Funds

Trillium ESG Global Equity Fund
Trillium ESG Small/Mid Cap Fund
Green Century Balanced Fund
John Hancock ESG Large Cap Core Fund

Materials

Product Literature

All Solutions

Solutions Index
About Us
Previous

About Us

About TrilliumTeamCareers
Advocacy & Public PolicyNewsroom
Contact
Investment Approach > Investment Criteria
Approach

ESG Integration & Criteria

Trillium’s investment processes are focused on finding companies with strong growth prospects that are attractively priced and meet our ESG criteria/requirements. Our analysts and portfolio managers conduct bottom-up, fundamental research on the companies, simultaneously reviewing both traditional financial and ESG metrics that we believe can add value to each strategies’ investment process.

Investment Criteria

Positive Thresholds
Exclusionary Screening Industries
Energy & Power Investments

ESG Criteria: Positive Integration

Some of the positive ESG qualities Trillium seeks in a company include:*

Environmental

  • Limits harmful pollutants and chemicals
  • Responsible raw material management
  • Actively lowers greenhouse gas emissions
  • Utilizes renewable energy sources

Social

  • Pays employees fair wage
  • Deploys a robust human capital management strategy
  • Encourages diversity and inclusion
  • Supports LGBTQ rights
  • Operates an ethical supply chain

Governance

  • Strives to have a diverse board
  • Values separation of CEO role from board chair
  • Pays executives reasonable wages
  • Dedicated to corporate transparency

* This is not an extensive list of the positive criteria analyzed during the research process

Exclusionary Screening

While much of Trillium’s ESG integration focuses on attributes we positively seek in investee companies, exclusionary screening remains an important tool to aid in managing exposure to risk and adherence to our investing principles, as well as part of our efforts to align with clients’ values and investing preferences. We periodically review our exclusionary screen coverage and methodology in effort to ensure the screens account for current societal, regulatory, scientific, or other norms.

Exclusionary Screening Process Brief PDF
Screening Process, Approach & Definitions PDF

Agricultural Biotechnology

Trillium excludes companies which earn 5% or more of revenues from genetic engineering business activities related to agriculture. The screen specifically applies to agricultural companies directly involved in the production of genetically modified organisms, and does not include food retailers, food producers or manufacturers of food ingredients.

Casinos and Gaming

Trillium excludes companies which earn 5% or more of revenues from gambling related business activities including operation, support, licensing or ownership. Support specifically relates to companies that provide key products or services fundamental to gambling operations including slot machines, roulette wheels, or lottery terminals, gambling technology and services such as IT maintenance, software design, security or surveillance systems, lottery ticket printing, credit lines, and casino management and consultation.

Coal Mining

Trillium excludes companies that earn 5% or more of revenues directly from coal mining. The screen does not include service companies or equipment manufacturers.

Hard Rock Mining

Trillium excludes companies that earn 5% or more of revenues directly from mining or quarrying hard rock. The screen does not include service companies or equipment manufacturers.

Pornography

Trillium excludes companies that earn 5% or more of revenues from adult entertainment, including producers, distributors, and retailers.

Private Prisons

Trillium excludes companies that earn 5% or more of revenues from companies that operate private prisons, jails, detention centers or correctional facilities. The screen does not include companies that service or equip these facilities.

Tar Sands & Arctic Drilling

Trillium excludes companies that earn 5% or more of revenues directly from the extraction of tar sands, sometimes known as oil sands. Additionally, Trillium excludes companies that earn 5% or more of revenues directly from Arctic drilling for oil or gas. The screen does not include service companies or equipment manufacturers.

Tobacco

Trillium excludes companies which earn 5% or more of revenues from the production, distribution, licensing, or retailing of tobacco products, such as cigars, cigarettes, e-cigarettes, inhalers, smokeless tobacco, snuff, chewing tobacco, etc. Companies that grow or process raw tobacco leaves are included in the definition. Additionally, Trillium excludes companies that earn 5% or more of revenues from the manufacture and supply of key products necessary for the production of tobacco products.

Weapons and Firearms

Trillium excludes companies which earn 5% or more of revenues from the production of conventional weapons; weapons related support systems and services; weapons systems, components and support systems and services; manufacture of landmines whole systems or components; or the manufacture and retail of civilian firearms and ammunition. Additionally, Trillium has a zero tolerance for companies that earn any revenues from the production of nuclear, biological, or chemical weapons and related systems or components.

Ongoing Screening

In addition to the above screens, we periodically review and restrict companies with major recent or ongoing controversies in areas such as:

  • Animal Welfare
  • Environment
  • Governance
  • Human Rights
  • Product Safety

Note on fossil fuels:

It is clear the world’s climate is changing at a rapid pace, as human activities pump more greenhouse gas emissions (GHGs) into the atmosphere every year. Trillium acknowledges that no genuine effort to slow or combat climate change can ignore the Energy and Utilities sectors. Investing in companies that do not proactively manage these climate-related risks and opportunities exposes portfolios to unnecessary, material risks. As long-term oriented, sustainability-focused investors, Trillium seeks to invest in companies that seize transition opportunities to move towards a net zero greenhouse gas emission economy, while avoiding those companies not likely to successfully minimize their climate risks.

We look to invest in companies with a business model designed to succeed in a low-carbon economy. At the same time, we avoid investing in companies with the greatest transition risks, namely fossil fuel companies without a transition plan we find credible. We apply this framework to companies in the Energy and Utilities sectors (excluding Utilities companies without power generation), as well as any company deriving 50% or more of revenue from sales to Energy or Utilities companies (excluding Utilities companies without power generation). At a minimum, to be considered for investment, these companies must derive at least 10% current revenue from renewable energy or enabling technology, and no commitments to invest in new fossil fuel exploration, production, storage, transport (excluding distribution), trading, or refining capacity; or new fossil fuel-based power generation without emissions capture.

This approach is in line with our commitment to align our portfolios with a net zero economy, as members of the NetZero Asset Managers Initiative.

Important Information: There is no assurance that impact or investment objectives will be achieved. This is not a recommendation to buy or sell any of the securities mentioned. It should not be assumed that investments in such securities have been or will be profitable. The specific securities were selected on an objective basis and do not represent all of the securities purchased, sold or recommended for advisory clients.

Approach to Investing in Power and Energy

We look to invest in companies with a business model designed to succeed in a low-carbon economy. At the same time, we avoid investing in companies with the greatest transition risks, namely fossil fuel companies without a transition plan we find credible. We apply this framework to companies in the Energy and Utilities sectors (excluding Utilities companies without power generation), as well as any company deriving 50% or more of revenue from sales to Energy or Utilities companies (excluding Utilities companies without power generation). At a minimum, to be considered for investment, these companies must derive at least 10% current revenue from renewable energy or enabling technology and have no commitments to invest in new fossil fuel exploration, production, storage, transport (excluding distribution), trading, or refining capacity, or new fossil fuel-based power generation without emissions capture.

Further characteristics of a credible transition plan could include:

  • A higher projected or historical revenue growth rate from renewable energy or enabling technology, as compared to fossil fuel-based revenue;
  • Capex plan showing spending on renewable energy or enabling technology;
  • Regulatory permit approval for new renewable energy or related projects; or
  • Approved Science Based Targets for greenhouse gas emission reduction or time-bound commitment to set Science Based Targets.
Download Approach PDF

We Believe Impact is Active

‍Explore Investment Approach

Investing For A Stronger Future

Learn how Trillium’s impact investing strategies transform investor capital into a catalyst for change.

Contact our Team

Notice

You are now leaving the Trillium Asset Management website and being connected to a third-party website.

Please note that Trillium Asset Management is not responsible for the information, content or products(s) found on third-party websites.

Back
I agree
Active Portfolios, Global Impact
Putting Assets into Action since 1982®
Visit us on LinkedIn
How We Work
About TrilliumInvestment ApproachAdvocacy & PolicyInvestment CriteriaContact UsOur TeamCareersTrillium OverviewFirm Impact ReportCommunity Investing
Resources
NewsroomSustainability DisclosuresForm CRS
Who We Serve
Private ClientsFinancial IntermediariesInstitutional Investors
Equity Strategies
ESG Global Equity
ESG Core Equity
ESG Large Cap Core
ESG Small/Mid Cap Core
ESG Growth & Income
Sustainable Opportunities
Fixed Income Strategies
US Core Bond
Mutual Funds
Trillium ESG Global Equity Fund
Trillium ESG Small/Mid Cap Fund
Green Century Balanced Fund
John Hancock ESG Large Cap Core Fund
Login
Mutual Funds LoginSeparate Accounts Login
© 2020 Trillium Asset Management. All Rights Reserved. Trillium Asset Management is a registered trademark.
By clicking the links to third party sites you are leaving the Trillium site and entering a third party site. Trillium are not responsible for any information contained on the third party site.
Green Investing™
Privacy & Use Policies
Brochure ADV 2A-2B