WisdomTree has announced plans to boost the sustainability credentials of several of its UCITS ETFs through additional environmental, social, and governance (ESG) screening criteria.
WisdomTree is introducing additional ESG criteria within its self-indexed ETFs in Europe.
The ETFs, which are all linked to indices developed in-house at WisdomTree, include a range of core and dividend-focused equity funds as well as several more niche products targeting disruptive investment themes.
WisdomTree’s indices currently exclude issuers that violate international norms such as the United Nations Global Compact principles as well as firms involved in controversial weapons and tobacco.
The new ESG screening criteria include the reduction of the revenue threshold for thermal coal activities from 25% to just 5%, as well as additional screening steps that remove any firm with more than 5% revenue exposure to civilian firearms, oil sands, arctic oil & gas exploration, or shale energy.
The updated ESG screening criteria will take effect in the indices at the end of February and are expected to be implemented within the ETFs after the market close on 8 March 2023.
The ETFs undergoing changes are outlined below:
US equities
WisdomTree US Equity Income UCITS ETF
WisdomTree US Quality Dividend Growth UCITS ETF
Developed ex-US equities
WisdomTree Europe Equity Income UCITS ETF
WisdomTree Europe Small Cap Dividend UCITS ETF
WisdomTree Europe Equity UCITS ETF
WisdomTree Eurozone Quality Dividend Growth UCITS ETF
WisdomTree UK Equity Income UCITS ETF
WisdomTree Japan Equity UCITS ETF
Global equities (including emerging markets)
WisdomTree Global Quality Dividend Growth UCITS ETF
WisdomTree Emerging Markets ex-State-Owned Enterprises ESG Screened UCITS ETF
WisdomTree Emerging Markets Equity Income UCITS ETF
WisdomTree Emerging Markets Small Cap Dividend UCITS ETF
Thematic
WisdomTree BioRevolution UCITS ETF
WisdomTree Battery Solutions UCITS ETF
WisdomTree Blockchain UCITS ETF
WisdomTree Cybersecurity UCITS ETF
WisdomTree Global Automotive Innovators UCITS ETF