“A sectoral approach is very important for portfolio investment analysis”

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Photo by: MikeMareen / iStock

It is very important for investors to avoid “toxic” industries when building an investment portfolio. We also pay attention to this work. Our principles of responsible investment are published on Sistema JSFC website in the Sustainable Development section. We exclude any illegal activities related to human rights violations, arms trafficking, gambling, tobacco production, etc.

However, there are borderline areas for which we plan to provide sector-specific risk assessment approaches. This includes, for example, potential assets associated with one or another production and natural resource use, as there are more aspects in their activities that require close monitoring and operational risk management. We are now planning to detail the sectoral approaches, which will allow us to conduct a point-to-point analysis of portfolio investments.

Cover photo: Young777 / iStock

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