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New Report From ISS ESG: Cruelty-Free Portfolios: How To Approach Animal Testing In Investments?

Below is an excerpt from ISS ESG’s recently released paper “Cruelty-Free Portfolios: How To Approach Animal Testing In Investments?”. The full paper is available for download from the Institutional Shareholder Services (ISS) online library.

KEY TAKEAWAYS

  • Animal testing-related ESG assessments can be challenging, due to the diversity of types of animal testing, regulatory frameworks, and company commitments and performance found in the space.
  • A lack of company disclosures on this uncomfortable topic makes the task of analysing involvement in animal testing even more complex. Quality insights are based on issue expertise as well as a region- and sector-specific approach.
  • Animal testing is a values-based issue, and investors’ approaches to incorporating it in their ESG strategies will vary considerably.
  • Access to granular, high-quality data helps to apply more nuanced investor approaches to animal testing.

As of July 2021, ISS ESG’s Sector-Based Screening identifies more than 2,000 companies involved in animal testing activities:

Explore ISS ESG solutions mentioned in this report:

  • Use ISS ESG Sector-Based Screening to assess companies’ involvement in a wide range of products and services such as alcohol, animal welfare, cannabis, for-profit correctional facilities, gambling, pornography, tobacco and more.
  • Identify ESG risks and seize investment opportunities with the ISS ESG Corporate Rating.

By:
Dominika Dobielewska, Associate, Research, ISS ESG
Maura Mercedes Santos, Analyst, Research, ISS ESG
Claudia Kirschner, Associate Vice President, Research, ISS ESG