Knowledge Base

← Compare different SRI/ESG management approaches: ESG integration, best-in-class, best-in-universe, best effort, exclusions, shareholder engagement, and impact investing
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What is the main difference between the Best-in-Class and Best-in-Universe approaches in SRI/ESG management?

What is the main difference between the Best-in-Class and Best-in-Universe approaches in SRI/ESG management?

Best-in-Class excludes controversial companies, while Best-in-Universe does not.
Best-in-Universe respects sector weighting, unlike Best-in-Class.
Best-in-Class selects the best practices regardless of sector, unlike Best-in-Universe.
Best-in-Universe abandons the sector representativeness constraint, unlike Best-in-Class.