Which of these forms of asset owner is most likely to apply an exclusionary policy barring investment in all assets exposed to a particular business area?

A charitable foundation is often most likely to apply an exclusionary policy barring investment in all assets exposed to a particular business area. This arises from the foundation's mission and values, which are typically focused on specific social causes or ethical concerns. They may choose to avoid investing in industries such as tobacco, firearms, or fossil fuels that conflict with their philanthropic goals and ethical guidelines.

Foundations seek to align their investments with their social mission, making exclusionary policies a primary tool for managing investment decisions. Such policies reflect their commitment to responsible investing that supports their overarching objectives. In contrast, other asset owners might have different investment priorities or fiduciary responsibilities that lead them to adopt a broader investment strategy without stringent exclusions. For instance, a DB pension scheme or a sovereign wealth fund may prioritize overall returns or diversification over specific ethical considerations, while a general insurance business might focus on financial performance relative to its risk exposures.