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flowchart LR
A["Investable Universe<br/>5,090 Companies<br/>(≥$250M market cap)"] --> B{Ethical<br/>Screening}
B -- "Pass: 3,098" --> C["Eligible Universe<br/>3,098 Companies"]
B -- "Fail: 1,992 (39%)" --> EX[(Excluded<br/>Database)]
C --> E["Company Analysis<br/>6 Key Dimensions"]
E --> F{Investment<br/>Decision}
F -- "Selected: 40-50 (1.5%)" --> G["Investment<br/>Strategy"]
F -- "Learn & Revisit" --> RD[(Research<br/>Database)]
G --> P[(Portfolio<br/>Holdings)]
P --> J[Ongoing<br/>Review]
J -.-> E
RD -.-> E
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Our Process
Three Principles, Three Stages
How we avoid preventable harm, seek available goodness, and know the difference.
Public companies find new and exciting ways to disappoint us all the time. And so does the state of the world.
Our principles and process are designed to give clients an intuitive grasp of how we will react to these unspecified and uncertain possible futures.
Three simple goals sit at the center of our process:
- Avoid preventable harm
- Seek available goodness
- Know the difference
These aren’t hyper-specific rules that calcify over time. They’re organizing principles that guide action through uncertain terrain.
Process to Portfolio
1. Avoid Preventable Harm (Screening, Divestment, & Exclusions)
Our process begins by removing all companies associated with harmful products or conduct from consideration as outlined in our policy.
Our screening framework divides into two primary policy types, each addressing a distinct form of risk.
Product-Based Exclusions
What companies make and sell — categorical rejections of harmful business lines.
Conduct-Based Exclusions
How companies behave — corporate actions and patterns of harm from operational choices.
The Impact: Reshaping the Investable Universe
Database Metrics
2,872 active exclusions
36% from ECIC proprietary research
291 (58%) of S&P 500 companies excluded
$40.7T (75%) of S&P 500 market cap excluded
(as of August 2025)
Our screening framework substantially narrows the field:
- Starting universe: 5,090 US companies with market cap ≥ $250M
- Excluded: 1,992 companies flagged for products or conduct issues
- Exclusion rate: 39% of the investable universe
- Eligible for analysis: 3,098 companies move to the next stage
2. Seek Available Goodness (Company Analysis)
After ethical screening, 3,098 companies remain. We evaluate every candidate across six dimensions:
People & Leadership
- Leadership quality, retention, governance
- Stakeholder relationships and engagement
- Culture strength and diversity
- Track record of execution
Product & Innovation
- Pipeline strength and innovation capacity
- Market differentiation and competitive positioning
- Quality standards and product responsibility
- Market fit and customer adoption
Operations
- R&D efficiency and resource allocation
- Go-to-market execution and distribution
- Supply chain resilience and risk management
- Operational metrics and efficiency trends
Financial
- Balance sheet health and capital structure
- Capital allocation discipline and track record
- Growth durability and cash generation
- Valuation relative to intrinsic value
Competitive Moat
- Barriers to entry and structural advantages
- Network effects and scale benefits
- Brand equity and pricing power
- Durability of competitive position
Risk Assessment
- Adoption and market risks
- Disruption threats and competitive dynamics
- Regulatory and geopolitical exposure
- Environmental dependencies and climate risks
- Liquidity, volatility, and permanent capital loss scenarios
3. Know the Difference (Decision Refinement & Learning)
Ethical investing requires humility—we won’t always get it right. This stage is about recognizing uncertainty, refining judgment, and adapting as our understanding deepens.
Ongoing Analysis & Review
- Scenario analysis and stress testing
- Regular re-scoring of every holding
- Research database updates after each analysis
- Mental models challenged in investment committee reviews
Evolution & Adaptation
- Screening criteria evolve as ethical understanding shifts
- Process improvements from quarterly retrospectives
- Client feedback investigated and incorporated when valid
- Continuous learning captured in research knowledge base
Ready to See This Process in Action?
Our three strategies—Growth, Income, and Diversification—apply this process to different investment goals and time horizons.
How implementation varies: Our Growth Strategy has no compromises—we pick the stocks, full stop. But Income and Diversification strategies sometimes need to balance what clients require (steady dividends, daily liquidity) with what our ethical framework allows. If you see a gap between our policy and a holding, it’s because we couldn’t find a compliant alternative that meets the strategy’s core requirements.
Additional Resources
- Growth Strategy: capital appreciation through ethical leadership.
- Income Strategy: sustainable dividend income with ethical constraints.
- Diversification Strategy: balanced multi-asset exposure.
- Screening Policy: our full exclusion methodology and database.
- Research & Analysis: articles, quarterly reviews, and case studies.
Investment strategies involve risk of loss. Past performance does not guarantee future results. Our investment process and exclusion criteria may limit opportunities and affect performance compared to strategies without such constraints.