The Positive Criteria

After the pre-selection the actual evaluation process of the ecological and social criteria takes place. This process is often called positive criteria. The defined characteristics and their weightings differ from fund to fund. For the evaluation the information from the primary and secondary research is consulted.

For the evaluation of the positive criteria in practice different approaches are applied. Most of the time, several approaches are combined. These are:

Branch leader approach^[1]

This approach evaluates the sustainability of the enterprise in reference to the corresponding industry. The enterprise is compared with others within the same industry. Enterprises, which are better concerning the sustainability dimensions than the line average or which take a top position in the industry, can be taken up into the funds.

branch leader approach can also take up shares of above average enterprises from an actually less sustainable industry into the portfolio. The idea behind it is that especially such industries often show an enormous improvement potential regarding the sustainability. This approach is also known as the Best in Class approach.

Best-in-service-Approach^[2]

The best in service approach is a industry-overviewing approach. The enterprises are classified on the basis of the use (service), which it furnishes for the consumer with their economical activities. The use is discussed on the basis the need of the customers. This approach can be well explained with the example of the mobility. Today's society wants to be as mobile as possible. The mobility fulfills this need and was therefore defined as service sector. All offerers of means of transport e.g. bikes, car, truck, busses, trains, airplanes belong into this sector. The aim is now to identify the enterprises which offer the service mobility in a ecologically most efficient and socially most responsible way.

Pioneers^[3]

The fund offerers understand the term pioneers as small and medium enterprises, which stand out from branch leaders thanks to their products and services, which furnish a high ecological and social use. Te companies have to be identified, which have high chances of success within these ranges and thus show a large growth potential.

Sustainable Bonds^[4]

With this approach, debtors such as countries, states, provinces, cities as well as international organizations (of which bonds could be taken up in the funds) are evaluated. The testing method is adapted on the situation of most varying debtor categories. The goal thereby is the evaluation of the best debtors.

The countries, states and provinces are evaluated on the one hand on the basis of different environmental and social topics (e.g. greenhouse effect, bio diversity, development cooperation), on the other hand on the basis of their attitude concerning the environment and the social politics (e.g. promotion of renewable energy sources, handling of ecological risks). For the evaluation of the cities the administration has included as an additional factor. For the international organizations, it must be guaranteed that the projects financed by them reach the environmental and social demands intended for them.

[1] vgl. Zürcher Kantonalbank, Umwelt- und Sozialresearch: Die Nachhaltigkeitsanalyse von Unternehmen und Obligationenschuldnern für den MI-Fonds ECO. Zürich 2002, S. 3-5

[2] vgl. Schweizer Verband der Raiffeisen Banken: Anlagefonds Guide, St. Gallen 2001, S.25

[3] vgl. Zürcher Kantonalbank, Umwelt- und Sozialresearch: Die Nachhaltigkeitsanalyse von Unternehmen und Obligationenschuldnern für den MI-Fonds ECO. Zürich 2002, S. 6

[4] vgl. Zürcher Kantonalbank, Umwelt- und Sozialresearch