A company is accused of surveying employees to prevent them from forming a union. The decision of an asset manager to divest from holding shares in…

Conduct-related exclusions are applied when a company is excluded from an investment portfolio

due to specific behaviors or incidents that violate certain ethical or legal standards. In this case, the

exclusion is based on the company's actions rather than the nature of its business.

Conduct-Related Exclusion: This type of exclusion arises from specific behaviors or practices that are

deemed unethical or illegal. Examples include violations of labor rights, corruption, environmental

damage, or other significant breaches of conduct. The decision to divest from a company accused of

preventing union formation fits this category as it directly relates to the company's conduct​​​​.

Universal Exclusion: This refers to broad-based exclusions applied to entire sectors or industries

based on certain ethical principles or ESG criteria. It is not specific to the behavior of individual

companies but rather to the nature of the industry.

Idiosyncratic Exclusion: These are exclusions that do not have broad consensus and are based on

individual or specific institutional criteria. They are not generally applied universally or based on

common ethical standards​​​​.

======