The move comes following changes by index provider Solactive, which determined that in order for the indices to comply with SFDR requirements around good governance practices, companies missing this information would not be “eligible for selection”.
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Now, companies not covered by Sustainalytics research on global standard screening, controversy score, ESG risk ratings and various product involvement fields will be ineligible for index selection.
This is a switch from before, when stocks that were not covered by the researcher could still be included.
Invesco’s three ETFS, Invesco Global Clean Energy, Invesco Hydrogen Economy and Invesco Wind Energy, all track Solactive’s WilderHill indices.
In a shareholder notice published last week (7 February), Invesco confirmed the changes would come into effect from 28 February.
