What is negative screening?
Negative screening is a concept used in socially responsible investing that allows investors to exclude certain types of companies from their investment portfolio. It has historically been used as a way for investors to enact their value system through their investments and to make sure their investments comply with guidelines concerning environmental, social, and governance (ESG) concerns.
Is it feasible?
Yes. There are numerous tools available for the university to identify investments that are active participants in the genocide and occupation in Palestine. These tools are generated by civil society organizations, but also the United Nations Office of the High Commissioner on Human Rights.
Is it contractually difficult? Yes. But no responsible investor would sign investment contracts that forbade them from adjusting the composition of their investment portfolios. If they did, they could not ensure that they met investment return targets. In past years of U of A's disclosure lists, you can see companies that have been removed for a variety of reasons. Additionally, other universities have undertaken negative screening policies. University of King's College made commitments regarding weapons manufacturing. Similarly, UBC made commitments regarding fossil fuels. These changes are difficult, but possible.
Does the University of Alberta currently use negative screening?
Officially, no. The university has stated that it does not believe in 'excluding' particular investments. However, it also does not appear to actively invest in so-called 'sin industries,' such as alcohol, tobacco, gaming, and pornography. 'Sin firms' are often targeted for negative screening. The university has not disclosed that it has any official process for accountability to its stated investment principles.
While the concept of negative screening is primarily applied in discussions of ethical investments, all investors weed out firms that do not produce sufficient returns. They already have a process for 'excluding' particular investments from their overall holdings. In fact, university policy compels them to do so.