Ethics focuses on the dignity and universal fundamental rights of every person. Ethics deals with the criteria of good living and responsible action, fair interpersonal interaction and just coexistence in a liberal democratic society.
Investment processes are traditionally based on the basic requirements of security, return and liquidity. Investment ethics combines these “old” criteria with new standards. At the centre of these standards is the socially and ecologically responsible business activity of the company, derived from the principles of good corporate governance. Companies are also quasi-public institutions. As such, they are at the service of a functioning society.
Sustainability was first defined in 1987. Sustainability is development that meets the needs of the present generation without compromising the ability of future generations to meet their own needs and choose their own lifestyles (as defined by the Brundtland Commission). Arete Ethik Invest considers ecological, social and economic factors under this definition of sustainability. All investments go through a multi-stage selection process in which issuers (companies and states) are analysed according to defined criteria.