"We do have a qualitative screen to catch companies that have had reputation concerns or behave as bad actors in the relevant calendar year. This past year we used the UN Global Compact as such a screen. Twelve wonderful companies got red or amber signals, flagging negative issues, and we published that information as well.
But Altria didn′t happen to get a warning flag in 2017—what gives? They weren′t a party to any serious flagged issues in the calendar year of the ranking. If our flag included products that are associated with health concerns, most food, beverage, CPG, entertainment, transportation and product manufacturing companies would be caught." (Underlining added for emphasis).
[COMMENTARY]Most retail investors don’t know or understand that almost all ESG-ethical-responsible-sustainable company ratings and rankings don’t consider the social, environmental, or health aspects, etc., of a company’s products! However, a few indices veer in that direction, usually measuring the percent of company revenues considered ’green’ or similar. TheFTSE Russell Green Revenues Index Series is one such index.
(Incidentally, investors can learn how to deal with these issues in myDIY Ethical-Sustainable Investing Pays Tutorial.)
Why a Tobacco Company Made the 2018 100 Best Corporate Citizens List, by Jen Boynton, June 13, 2018, TriplePundit, USA.