CFA: Mandates and reporting

Explanations, applications and practice for mandates and reporting.

• IFRS S1 and GRI: different materiality questions

  Distinguish sustainability-related financial information from significant impact reporting.

  Comparisons

• Negative screening and best-in-class selection

  Compare a prohibited-activity rule with a within-sector ranking hurdle.

  Comparisons

• Specifying an exclusion rule that can be checked

  Define the activity, metric, threshold, data source and treatment of missing information.

  Lessons
• 

  Exclusion-screen review worksheet

  Download an editable CSV for thresholds, missing values and screening decisions.

  Templates

• Counting an investable universe with overlapping exclusion lists

  Avoid subtracting the same issuer more than once when screening a universe.

  Worked examples

• Calculating a score-linked management fee under a stated contract

  Apply a fictional score-improvement condition before converting basis points to an annual fee.

  Worked examples

• Why two ESG scoring methods can produce different results

  Recalculate a fictional issuer score using two explicit sets of weights.

  Worked examples