Investment Process
The Hexis Nicotine Transition Score.
A proprietary, differentiated framework combining deep sector knowledge with new AI techniques — assessing companies' progress toward reduced-risk nicotine products.
27
Indicators
13
Sub-indicators
100%
Independently reviewed by ACA Ethos
What HNTS measures
Three lenses on a company's transition.
Transition Progress
- Reduced-risk revenue share
- RRP investment intensity
- Product pipeline strength
Governance & Conduct
- Disclosure quality
- Capital allocation discipline
- Stewardship readiness
Growth Potential
- Hiring trends
- Market sentiment
- Emerging market exposure
Embedded throughout
HNTS sits at the heart of two critical processes.
01
Valuation & Portfolio Construction
HNTS scores feed directly into security selection and portfolio construction — translating qualitative transition signals into systematic position sizing.
02
Stewardship & Engagement
The same framework drives our engagement agenda — making portfolio companies more sustainable through targeted, evidence-based dialogue. Overseen by the Harm Reduction Stewardship Council, chaired by Derek Yach.
Independent Review
"The HNTS framework provides a reasonable basis for assessing companies' progress in transitioning toward reduced-risk nicotine products."
— ACA Ethos, independent review