ESG criteria enhancement on WT UCITS indices
23 February 2023
The new ESG screening criteria includes the reduction of the revenue thresholds for Tobacco and Thermal Coal activities, as well as the additional screening criteria on Small Arms and Unconventional Oil & Gas activities, as detailed in the table below.
The updated ESG screening criteria are expected to be implemented after the market close on 8th March 2023.
| WTI ESG Exclusion Criteria | Current ESG criteria | ESG criteria enhancement |
| Global Standards Screening |
Companies that, or are violate certain commonly accepted international norms and standards, such as United Nations and OECD guidelines are currently excluded. |
Companies that violate certain commonly accepted international norms and standards, such as United Nations and OECD guidelines will be excluded. |
| Controversial Weapons | Companies involved in controversial weapons are currently excluded. | Companies involved in controversial weapons will be excluded. |
| Tobacco | Companies that are involved in tobacco production and supplying of tobacco-related products/services, or companies which derive more than 10% of revenue from tobacco distribution are currently excluded. | Companies that are involved in tobacco production and supplying of tobacco-related products/services, or companies which derive more than 5% of revenue from tobacco distribution will be excluded. |
| Thermal Coal | Companies which derive more than 25% of revenue from thermal coal extraction, or 25% of revenue or capacity from thermal coal-based power generation are currently excluded. | Companies which derive more than 5% of revenue from thermal coal extraction, or 5% of revenue or capacity from thermal coal-based power generation, or derive more than 5% of revenue from providing tailor-made products and services to support thermal coal extraction will be excluded. |
| Small Arms | Not currently applicable | Companies that derive more than 5% of revenue from activities connected to small arms will be excluded. Such activities include the manufacturing and selling of small arms, or the manufacturing and selling of key components involved in small arms manufacture, or being involved in the distribution of small arms. |
| Oil Sands | Not currently applicable | Companies which derive more than 5% of revenue from oil sands extraction will be excluded. |
| Arctic Oil & Gas Exploration | Not currently applicable | Companies which derive more than 5% of revenue from oil and gas exploration in the Arctic regions will be excluded. |
| Shale Energy | Not currently applicable | Companies that derive more than 5% of revenue from shale energy exploration and / or production will be excluded. |
| Parent Indexes | Fund Name | Index Name |
| Developed International Equity Indexes | WisdomTree Europe Equity Income UCITS ETF | WisdomTree Europe Equity Income Index |
| WisdomTree Europe Small Cap Dividend UCITS ETF | WisdomTree Europe SmallCap Dividend UCITS Index | |
| WisdomTree Europe Equity UCITS ETF | WisdomTree Europe Equity UCITS Index | |
| WisdomTree Eurozone Quality Dividend Growth UCITS ETF | WisdomTree Eurozone Quality Dividend Growth Index | |
| WisdomTree UK Equity Income UCITS ETF | WisdomTree UK Equity Income Index | |
| WisdomTree Japan Equity UCITS ETF | WisdomTree Japan Dividend UCITS Index | |
| Global (including Emerging Markets), ex-State-Owned Enterprises Indexes |
WisdomTree Global Quality Dividend Growth UCITS ETF | WisdomTree Global Developed Quality Dividend Growth Index |
| WisdomTree Emerging Markets ex-State-Owned Enterprises ESG Screened UCITS ETF | WisdomTree Emerging Markets ex-State-Owned Enterprises ESG Screened Index | |
| WisdomTree Emerging Markets Equity Income UCITS ETF | WisdomTree Emerging Markets Equity Income UCITS Index | |
| WisdomTree Emerging Markets Small Cap Dividend UCITS ETF | WisdomTree Emerging Markets SmallCap Dividend UCITS Index | |
| U.S. Dividend and Core Equity Indexes | WisdomTree US Equity Income UCITS ETF | WisdomTree US Equity Income UCITS Index |
| WisdomTree US Quality Dividend Growth UCITS ETF | WisdomTree US Quality Dividend Growth UCITS Index | |
| Thematic Indexes | WisdomTree BioRevolution UCITS ETF | WisdomTree BioRevolution ESG Screened Index |
| WisdomTree Battery Solutions UCITS ETF | WisdomTree Battery Solutions Index | |
| WisdomTree Blockchain UCITS ETF | WisdomTree Blockchain UCITS Index | |
| WisdomTree Cybersecurity UCITS ETF | WisdomTree Team8 Cybersecurity Index | |
| WisdomTree Global Automotive Innovators UCITS ETF | WisdomTree Berylls LeanVal Global Automotive Innovators Index |