Invesco revamps ESG methodology of solar energy ETF

In a shareholder notice yesterday (23 May), the Invesco Solar Energy UCITS ETF said it will now exclude companies directly involved in adult entertainment, alcohol, gambling and tobacco, as well as certain defence and energy firms.

Alongside excluding firms with direct exposure to these industries, companies with a greater than 20% indirect exposure to the respective sectors will also be excluded under the new rules.

Furthermore, the ETF will also exclude firms with an S&P governance score screen of less than five, or with no score at all.

The changes will be effective from 1 June.