INDEX SCREEN DEFINITIONS FOR THE ESG SCREENED SUITE
Many of our iShares sustainable ETFs seek to track an index with business involvement screens. Business involvement screens seek to remove exposure to controversial business activities that may pose risks or violate an investor’s preferences. Learn more about the specific screens below.
RELATED iSHARES FUNDS
| SCREEN | DEFINITION |
|---|---|
| Controversial weapons | All companies involved >0% in the core weapon system, or components/services of the core weapon system that are, and are not, considered tailormade and essential for the lethal use of the weapon or ≥25% ownership by revenue. |
| Small arms | All companies deriving >0% revenue from the manufacture and sale of assault weapons and/or small arms (non-assault weapons) to civilian customers. All companies that manufacture and sell small arms to military/law enforcement customers. All companies that manufacture and sell key components of small arms or are involved in the retail and/or distribution of assault weapons and/or small arms (non-assault weapons). |
| Tobacco | All companies deriving >0% revenue from manufacturing tobacco products; All companies deriving ≥10% revenue from supplying tobacco-related products/services; All companies deriving ≥10% revenue from the distribution and/or retail sale of tobacco products or ≥25% ownership by revenue. |
| Oil sands and shale energy | All companies deriving ≥5% revenue from oil sands extraction or shale energy exploration and/or production. |
| Thermal coal | All companies deriving ≥5% revenue from thermal coal extraction or the generation of electricity from thermal coal. |
| Fossil fuel reserves | All companies with specific fossil fuel reserves, as measured by S&P Trucost Limited (Trucost) including Thermal Coal, ‘Other’ (non-Metallurgical) Coal, Conventional and Unconventional Oil, Natural Gas, Shale Gas, ‘Other’ Oil and Gas. |