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Exclusion list

Pella excludes companies with exposure to activities that harm the world

Uranium is one of the cleanest sources of electricity, however, it has a half-life of 4.5 billion years and is the cause of significant environmental damage if not properly contained during that time. Furthermore, uranium is the key input for atomic weapons. Pella has zero tolerance for weapons, and it is increasingly economically and technically possible to replace uranium with sustainable energy sources. Pella excludes companies that generate any revenue from mining uranium.

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Fossil Fuels

The developed world is approaching a point where it is technically and economically possible to replace fossil fuels with sustainable alternatives. To encourage this transition Pella excludes all companies generating power from thermal coal sources except when the thermal coal power generation is less than 5% of the total generation AND they have firm commitments to exit that activity entirely within three years from Pella's initial investment in that company. Pella also excludes power generators that (i) earn more than 15% of their revenue from gas turbine generation; (ii) exceed the carbon intensity threshold recommended by the IEA in the Paris Agreement; (iii) do not disclose their CO2 emissions.

The 5% threshold on thermal-coal powered generation with the requirement that the company must be transitioning away from coal within three years from Pella's initial investment reflects Pella's support for companies transitioning away from thermal coal.

The 15% threshold on gas turbine generation reflects the current use of standby gas generation for peak load scenarios, which often cannot be provided by renewable energy. This threshold will decline as batteries become a viable alternative to gas for peak load generation.


An old-growth forest has attained great age without significant disturbance and exhibits unique ecological features. These forests can be cut down for wood or to farm the land. Pella believes these activities cause unnecessary damage as tree plantations can be used for wood and existing farmland can be used more productively.


We exclude enterprises with any exposure to directly destroying old-growth forests. This includes paper and pulp companies, companies that transport the wood, and food companies that use old growth palm trees.

Timber in Forest
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There is no productive use for any weapon designed primarily to kill, maim, or otherwise severely injure people. Pella excludes companies that generate any revenue from selling or distributing such weapons or weapon delivery systems. This exclusion is all encompassing and includes weapons and delivery systems that comply with weapon treaties including: Treaty on the Non-Proliferation of Nuclear Weapons (1968), Biological Weapons Convention (1975), Ottawa Treaty (1997), Chemical Weapons Convention (1997), and Convention on Cluster Munitions (2008).


Tobacco products provide minimal if any health or societal benefits while being the cause of several severe negative health outcomes. Pella excludes all companies involved in the production of tobacco companies with significant ownership (due to holding directly, more than 10% of shares) in such companies. 

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While alcoholic beverages can be consumed in moderation, they provide minimal if any health or societal benefits while being the cause of several severe negative outcomes. Given the balance between moderate consumption and potential negative consequences, Pella excludes companies that generate revenue from manufacturing alcoholic beverages.


Pornography provides no societal benefits and comes as a material cost to portions of society. Pella regards it as an activity that causes unnecessary harm and excludes enterprises that generate revenue from pornography related activities, including production, distribution, or promotion.


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Gambling provides no societal benefits outside of entertainment and comes as a material cost to portions of society. Pella excludes enterprises that generate revenue from direct exposure to slot machines, casino operations (online and/or physical), lotteries, sports/other betting. The exclusions include enterprises whose exposure is via manufacturing gaming hardware or software, hospitality operations, online services, ownership of racetrack(s).

Animal Cruelty

Animal cruelty covers a board spectrum of behaviour, including cosmetic testing, using animals for live crowd entertainment, and intensive animal husbandry. Pella excludes companies with any direct exposure to those activities.

Humanely conducted medical testing is not included in the exclusion list as this is necessary to develop many life-saving treatments. We also do not automatically ban food production farms provided the farm is not involved in the banned activities. However, in all cases the animals should be treated with dignity and have a good quality of life.

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GMO Seeds

Pella excludes companies with any direct exposure to manufacturing GMO seeds due to two primary concerns: (i) excessive corporate dominance as farmers become locked into the seed manufacturers; (ii) potential negative environmental impact from GMO seeds usurping traditional seeds in the ecosystem.

Correctional Facilities

Pella believes that profiting from the incarceration of people is a breach of human rights. Further, there is evidence that the profit motive can encourage an increase in the number and term of incarcerations. We exclude companies with any direct exposure to for profit correctional facilities.

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United Nations Global Compact Ten Principles

  1. Support and respect the protection of internationally proclaimed human rights

  2. Make sure that they are not complicit in human rights abuses

  3. Uphold the freedom of association and the effective recognition of the right to collective bargaining

  4. Eliminate all forms of forced and compulsory labour

  5. Effective abolition of child labour

  6. Elimination of discrimination in respect of employment and occupation

  7. Support a precautionary approach to environmental challenges

  8. Undertake initiatives to promote greater environmental responsibility

  9. Encourage the development and diffusion of environmentally friendly technologies

  10. Work against corruption in all its forms, including extortion and bribery

Norms-Based Practices

Pella adheres to UN Global Compact and will exclude companies that severely breach the ten principles underlying the Compact if the company does not implement appropriate remediation action. This will be assessed on a case-by-case basis by Pella, and we will document the rationale behind our actions.

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