Australian Ethical does not invest in companies that are cigarette makers and tobacco growers, nor does it invest in retailers which specialise in the sale of tobacco.

Australian Ethical may invest in supermarkets which sell tobacco alongside other products, or companies that produce cigarette packet packaging.

Australian Ethical may invest in companies involved with varying revenue thresholds in the production of alcoholic drinks, packaging, or production of ingredients sold to alcoholic drink producers.

Australian Ethical does not invest in companies that derive any revenue from the production of weapons, nor does it invest in retailers which specialise in the sale of weapons.

Australian Ethical excludes companies developing new fossil fuel projects which are not aligned with the objectives of the Paris Climate Agreement. It also excludes banks that are not taking action to align their institutional lending with the objectives of the Paris Climate Agreement. Australian Ethical does not invest in companies that specialise in fossil fuel transport.

Australian Ethical may invest in companies involved with varying revenue thresholds in fossil fuel mining, extracting, processing,  electricity generation from fossil fuels, or specialist fossil fuel infrastructure.

Australian Ethical excludes companies if it identifies systemic disregard for adverse human rights impacts. It does not exclude companies automatically because of human rights breaches because it believes companies have the potential to contribute to better protection of human rights by taking steps to help identify breaches and then to play their role in helping achieve remedy of breaches and action to safeguard against their recurrence.

Australian Ethical excludes companies if it identifies systemic disregard for the rights and interests of their employees. Its assessment of labour controversies also considers global labour standards.

Australian Ethical excludes companies that log old-growth forests except for conservation, fire risk or other acceptable forest management purposes.

Australian Ethical does not invest in companies that derive any revenue from animal testing for cosmetic products. Testing for healthcare must adhere to the 3Rs (replacement, reduction, and refinement of animal testing).

Australian Ethical does not invest in companies that derive any revenue from nuclear fission electricity generation, uranium mining, or nuclear fuel processing.

Australian Ethical may invest in nuclear medicine for diagnosis and therapy in healthcare. It does not invest in companies that generate more than 5% of their revenues from providing specialist technologies and selling components to the nuclear energy industry.

Australian Ethical does not invest in companies that generate more than 5% of their revenues from adult entertainment (Production of pornography, strip clubs, broadcasting or distribution of pornographic content).

Australian Ethical reports on its climate ambition, climate action and climate progress in its annual Climate Report, which is developed with reference to the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD).