Sustainable & Responsible Investing
Signature Criteria

Calvert's sustainability analysts examine corporate performance in seven broad areas of concern for Calvert's Signature Strategies Funds. These are Calvert's traditional screened funds; our two other strategies, Solution Funds and SAGE Funds, have different criteria, which are addressed individually.

Read a one-page guide to Calvert's Signature Strategies' Sustainability Investment Criteria (PDF)

Governance and Ethics
Calvert monitors numerous aspects of corporate governance, including disclosure of policies and procedures, board independence and diversity, executive compensation, and attention to stakeholder concerns. We seek to avoid investing in companies that have poor governance structures or that have a record of illegal or questionable activities such as securities fraud, insider loans, or poor compliance records with respect to bribery and corruption. Calvert seeks to avoid investing in companies whose corporate governance and business practices compromise the shareholders' interests.

Calvert seeks to invest in companies that:

  • Align the interests of management and boards with those of shareholders,
  • Have diverse, independent boards,
  • Publish sustainability reports in accordance with the Global Reporting Initiative, and
  • Nurture a culture of ethics and compliance.

Workplace
Calvert seeks disclosure of policies, programs, and performance metrics in three areas: diversity, labor relations, and employee health and safety. Evaluations focus on quality of policies and programs, compliance with national laws and regulations, and proactive management initiatives. Board-level commitment to workplace practices is also helpful in distinguishing the true workplace leaders.

Calvert seeks to invest in companies that:

  • Demonstrate inclusive diversity policies, fair treatment of all employees, robust diversity (EEO-1) programs and training, and disclosure of workforce diversity data,
  • Provide strong labor codes (addressing the core ILO standards), comprehensive benefits, demonstrated training and development opportunities, and a record of sound employee relations, and
  • Have extensive employee health and safety policies, basic and industry-specific safety training, demonstrated safety management systems, and a positive safety performance record.

Environment 
Calvert evaluates corporate environmental performance, responsiveness to incidents, and compliance with environmental regulations. We favor companies that find opportunities to mitigate their environmental footprint, have better-than-average environmental records relative to their industry peers, and are responsive to stakeholders. Furthermore, we assess corporate-wide sustainability strategies and solutions that go well beyond regulatory compliance, such as integrating environmental factors into product design and corporate management and governance. Calvert seeks to avoid investing in companies involved in nuclear power, with the exception noted below.*

Calvert seeks to invest in companies that:

  • Demonstrate leadership in addressing climate change through appropriate policies and strategies, energy-efficient operations, and the development of renewable energy and other alternative environmental technologies,
  • Disclose sources of environmental risk and liability and take actions to minimize exposure to future risk,
  • Implement natural resource conservation and efficiency programs as well as strong pollution prevention programs, and demonstrate a strategy toward sustainable development, and
  • Integrate environmental sustainability and responsiveness with management and the board, and have programs to measure and engage stakeholders for environmental improvement.

*Calvert believes we must make tough choices to address climate change. We advocate a broad range of solutions, such as conservation and renewables, and do not view nuclear power as a viable option at this time. However, the Calvert International Opportunities Fund may, in select cases, invest in companies with existing nuclear power if they are demonstrating leadership in developing alternative energy. Moreover, the Fund will not invest in companies that own or operate new nuclear power plants or do not meet Calvert's safety and security performance standards.

Product Safety and Impact
Calvert selects companies that produce safe products and services in accordance with federal consumer product safety guidelines. Due to concerns about the impact of certain products on society, most Calvert funds seek to avoid investing in companies that are manufacturers of tobacco products, have direct involvement in gambling operations, are significantly involved in the manufacture of alcoholic beverages, or are significantly involved in the design, manufacture, sale, or distribution of weapons.** 

Calvert seeks to invest in companies that:

  • Produce or market goods and services that enhance the health or quality of life for consumers,
  • Maintain quality control and customer satisfaction,
  • Respond promptly to correct problems with product safety, and
  • Demonstrate integrity in their advertising and labeling, both domestically and overseas, and
  • Avoid animal testing, or when testing is legally required, reduce the use of animals. We also ask companies that rely on animal products to demonstrate that they meet high standards of humane treatment.

**Due to the challenges of international research, Calvert's international funds do not currently have gambling or animal welfare exclusions, and have set a 10% revenue threshold for tobacco and alcohol exclusions.

International Operations and Human Rights 
Calvert expects companies to be responsible corporate citizens abroad as well as at home and believe that companies should support culturally appropriate development that upholds the rights and dignity of all. We avoid investing in companies that have serious and persistent human rights problems or directly support governments that systematically deny human rights. 

Calvert seeks to invest in companies that:

  • Create and implement codes of conduct that cover their entire scope of operations,
  • Adopt specific human rights standards for their operations and practices,
  • Actively address human rights abuses, and
  • Promote social and economic justice for all people.

Indigenous Peoples' Rights 
Calvert is concerned about the survival and security of Indigenous Peoples around the world. Companies operating on or directly affecting the land of Indigenous Peoples should support appropriate economic development that respects indigenous territories, cultures, environment, and livelihoods. We seek to avoid investing in companies that have a pattern and practice of violating the rights of Indigenous Peoples. Calvert is also concerned about culturally offensive or negative images that promote racial, cultural, or religious stereotyping of Indigenous Peoples, and we may dialogue with companies that manufacture and/or market products with offensive labels and logos.

Community Relations 
Calvert seeks to invest in companies that have built solid relationships with the local communities in which they operate. Calvert examines corporate philanthropy, employee volunteerism, and support of women- and minority-owned businesses. For financial firms, we also review fairness in lending. We seek to avoid investing in companies with practices that have stirred major community unrest.

Calvert seeks to invest in companies that:

  • Create and implement codes of conduct that cover their entire scope of operations,
  • Demonstrate a solid commitment to the communities in which they operate,
  • Develop programs that target neglected communities, including low-income and minority populations, and
  • Build strong working relationships with local and community development organizations.

For more details about Calvert's sustainable and responsible investment strategies, download a copy of Investments that Make a Difference or request a copy by calling 1.800.368.2748.

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