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Exclusion list definitions
Background information
While Vision Super determines the types of companies to exclude (e.g. Controversial Weapons Producers), it uses the MSCI ESG platform to identify the specific companies for its Excluded Securities List (ESL). The MSCI platform groups companies by factors (also known as screens) and Vision Super excludes the factors that are most closely aligned with the exclusions determined by the Vision Super Board. In the sections below, more detail on the types of companies on the ESL is provided.
The definitions for the screens are noted by quotation marks in this document. They are sourced from either the MSCI Business Involvement Screening Research (BISR) methodology document or the MSCI web portal (which is not publicly available). Only the nuclear weapons screen is from the portal. A link to the latest BISR is provided immediately below.
Controversial weapons producers
This exclusion category is comprised of two sub-categories:
- Controversial Weapons (ex Nuclear).
- Nuclear Weapons
These sub-categories are defined below.
(1) Controversial Weapons (ex Nuclear)
Companies with any revenue associated with such weapons are on the ESL. MSCI defines this category as those companies:
- “involved in the production of whole weapon systems, delivery platforms or components of cluster munitions; production of whole weapon systems or components of landmines and biological or chemical weapons; production of depleted uranium weapons, blinding laser weapons, incendiary weapons, or weapons with non-detectable fragments; or is involved indirectly through ownership ties to companies involved in such products. Nuclear weapons are not considered for this screen.”
(2) Nuclear Weapons
- “reported revenue (or, where not disclosed, maximum estimated revenue) from nuclear weapons, intended and dual-use components for such products, delivery platforms capable of deploying nuclear weapons, essential components for such delivery platforms, and support services for such products as a percentage of total revenue in its most recently completed fiscal year.”
Smoking products producers
This exclusion category is comprised of two sub-categories:
• Tobacco Producers.
• Alternative Smoking Products Producers.
These sub-categories are defined below.
(1)Tobacco producers
Companies with any revenue associated with such activity are on the ESL. MSCI defines this category as those companies that are:
- “involved in the production of tobacco products. Tobacco products include nicotine-containing products, including traditional and alternative tobacco smoking products.”
Under this screen (defined by MSCI), companies that generate any revenue from the following activities are part of the Vision Super ESL:
- “Companies that produce tobacco products, such as cigars, blunts, cigarettes, tobacco inhalers, beedis, kreteks, smokeless tobacco, snuff, snus, dissolvable and chewing tobacco. This also includes companies that grow or process raw tobacco leaves;
- Contract manufacturing companies that produce the whole/complete electronic nicotine delivery system (ENDS); and
- E-cigarette devices with injected e-liquid/tobacco substance.”
In contrast, companies that generate revenue from the following activities (defined by MSCI) are not part of the Vision Super ESL:
- “Companies that sell private-label tobacco products manufactured by a third party; and
- Companies that applied for or hold license to manufacture tobacco products, including e-cigarettes, but have not yet started production.”
(2) Alternative Smoking Products
Companies with any revenue associated with such activity are on the ESL. MSCI defines this category as those companies that:
- “exclusively produce products that are alternatives to traditional smoking products. Companies that produce traditional smoking products are excluded from Tobacco Producer – Alternative Smoking Products.”
Under this screen (defined by MSCI), companies that generate any revenue from the following activities are part of the Vision Super ESL:
- “This includes electronic nicotine delivery systems (ENDS), including but not limited to vapes, vaporizers, vape pens, hookah pens, electronic cigarettes (“e-cigarettes” or “e-cigs”), tobacco inhalers, e-pipes and heated tobacco products (HTP).
- ENDS/E-cigarette devices should be disclosed as having nicotine or tobacco content.”
In contrast, companies that generate revenue from the following activities (defined by MSCI) are not part of this screen but may be captured as part of the Tobacco Producers screen outlined above:
- “Companies that produce traditional smoking products; and
- Cessation products.”
