Presentation to Vermont Pension Investment Committee
Ares' ESG Screening Framework
Ares' screening framework guides investment professionals in top-of-funnel decision-making by identifying
both products / services and practices requiring a more proactive ESG evaluation
NEGATIVE
SCREEN
ESCALATION
POSITIVE
SCREEN
а
Philosophy
There are companies and assets
that we do not invest in due to
potential significant harm to the
environment or society
or
we
For companies and assets in
industries that have a possible
adverse impact on the
environment
society,
escalate
key ESG-related
diligence items and make our
investment decision ba
objective data and analysis
on
We seek out investments with
products 1 services that
generate positive impacts on
the environment or society and
those with market-leading
sustainability practices
Confidential - Not for Publication or Distribution
Products / Services
Coal
Pornography
Alcohol
Gambling
High Interest
Lending
Mining
Education
Healthcare
Equipment &
Services
Nutritious, Safe
Food
27
Firearm / Weapons
Manufacturer
Tobacco
Manufacturer
Carbon Intensive
Products &
Services
High Calorie Foods
Military & Defense
Prison-related
Services
Energy Efficient
Products
Mental Health
& Well-being
Recycling &
Re-used
Practices
Bribery / Corrupt
Business Practices
Human Rights
Abuses
Deceptive
Marketing
Practices
Discriminatory
Practices
Misuse of
Consumer Data
Poor Health &
Safety Record
Industry-leading
Inclusion &
Diversity
Top Quartile Health
& Safety Record
Energy Efficiency
& Management
Alt Credit-Specific
Predatory Lending
Regulatory Evasive
Structures
Discriminatory
Practices
High Interest
Lending
Sponsor
Reputation Risk
Environmental
Liabilities
Constituency
Alignment
Renewable Energy /
Solar Loans
Financial Equity /
Literacy
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