Final answer:
The process of applying social and environmental criteria to investment decisions is called Ethical screening, where investors choose companies based on ethical values as well as financial performance.
Step-by-step explanation:
The process of applying social and environmental criteria to an investment decision is known as Ethical screening. This concept involves evaluating potential investments not just on the basis of financial performance, but also on factors such as a company's environmental impact, social responsibility, and governance practices. An example of ethical screening might be avoiding investments in companies that produce tobacco products or contribute to environmental pollution, thereby aligning investment choices with ethical values.