Rather than a typical one dimensional ‘ESG Screened’, ‘SRI’ or ‘Sustainable’ exclusion screen, the Invesco GBP Corporate Bond ESG UCITS ETF uses an ESG weighted methodology to improve the bond portfolio’s ESG score where the index includes exclusions, and tilts.
Companies with an MSCI ESG Controversy Score of 0 are immediately excluded. To the remainder of the companies, a factor tilt is applied to integrate ESG more fully into the index, so that it is in favour of higher ESG rated issuers and against lower rated ESG issuers.
Invesco have a firm commitment to ESG, stating, ‘Our ambition at Invesco is that our investors see the same strong principles reflected not only in our product range but in everything we do.’
Invesco was awarded an A+ rating for the fourth consecutive year in the 2020 assessment by the PRI (Principles for Responsible Investment). As well as receiving the highest overall score for their approach to responsible investment, scoring A or A+ in each individual category.
