LONDON - Xtrackers (IE) PLC, an investment company with variable capital, has announced updates to its suite of exchange-traded funds (ETFs) to incorporate enhanced Environmental, Social, and Governance (ESG) criteria. The changes, which were informed by MSCI Limited, the index administrator, on November 14, 2024, took effect on November 26, 2024.
The updates include renaming the reference index for each fund to reflect a shift towards a selection index that emphasizes low carbon and Socially Responsible Investment (SRI) criteria. For instance, the Xtrackers MSCI World ESG UCITS ETF's reference index changed from MSCI World Low Carbon SRI Leaders Index to MSCI World Low Carbon SRI Selection Index. Similar updates were made across other Xtrackers ESG ETFs, including those focused on the USA, Japan, Europe, EMU, and emerging markets.
Additionally, the Index Administrator announced the application of enhanced ESG Exclusion Criteria. The revised criteria now include an oil & gas screen, excluding companies involved in industries with a high potential for negative environmental, health, or social impact. The exclusion list covers alcohol, tobacco, gambling, adult entertainment, genetically modified organisms, civilian firearms, nuclear weapons, thermal coal, fossil fuel, and power generation reliant on fossil fuels. Firms with any connection to controversial weapons are explicitly excluded.
The investment objectives, policies, risk profiles, and fees of the funds remain unchanged despite the revisions to the index methodology. The updated supplement for each fund, reflecting these changes, is available on the Xtrackers website as of the effective date.
Xtrackers advises shareholders with queries or those seeking clarity to consult their stockbroker, bank manager, legal advisor, accountant, or independent financial advisor. The company also notes that these products are based overseas and are not subject to UK sustainable investment labeling and disclosure requirements.
This news is based on a press release statement from Xtrackers (IE) PLC.
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