Our Research

Karner Blue Capital offers a unique range of socially responsible investment strategies focused on improving animal welfare. We evaluate corporate conduct affecting animal welfare by considering: the appropriateness of their use of animals, their treatment of animals in captivity and the impact of their corporate operations on animals in the wild and their habitats.


Each of our strategies is based on the application of our 5 step research methodology:


step 1 universe

Our process begins with a global universe of approximately 4,000 companies for which sufficient corporate sustainability data exists to evaluate their environmental, social and governance performance. This universe consists predominantly of large-cap companies, but may also include mid-cap and small-cap companies.

step 2 industry selection

Our research analysis focuses on industries that have direct contact with animals and/or impact their natural habitats. KBC seeks to identify companies that integrate animal welfare into their business operations and lead their industries by example.

step 3 company research

Companies that meet baseline corporate sustainability and environmental performance thresholds are evaluated for animal welfare performance based on proprietary, industry-specific key performance indicators (KPIs). An animal welfare score for each company is calculated based on the summation of its weighted KPIs. KBC leverages information from third-party data providers, non-governmental organizations, non-profit groups and various media outlets to obtain a comprehensive view of each company’s sustainability practices, especially as they relate to KBC’s Animal Welfare Strategy.

step 4 controversy screen

KBC monitors and evaluates corporate controversies that have occurred during the prior 5-year period. Significant controversies directly related to animal welfare reduce a company’s animal welfare score. Companies with numerous controversies or especially egregious controversies, whether or not they are directly related to animal welfare, are evaluated for possible exclusion.

step 5 risk assessment

KBC evaluates key financial metrics of each company relative to its industry peers during the prior 5-year period. A company may be excluded if KBC determines that the company’s financial risk substantially outweigh its contributions to improving the lives of animals.

KBC’s portfolios are comprised of companies with above average animal welfare scores that operate in industries having animal welfare exposure as well as companies in other industries that creatively deploy their products and/or services to significantly enhance animal welfare.