What companies are included / excluded in the fund?
While the full list of companies on the MSCI ESG World Leaders Index is not readily available, here are examples of two companies currently included in the index and two companies that are excluded.
As at April 2019
Sector – Energy
Included – Total SA
Reason – To establish its position as a low carbon utility, for the past two years Total SA has continued to invest in solar and battery storage in an effort to lower carbon intensity across operations
Excluded – Royal Dutch Shell PLC
Reason – Royal Dutch Shell and Eni S.p.A. continues to face allegations of corruption and money laundering related to its acquisition of oil prospecting license (OPL) 245 in Nigeria.
Sector – Automobiles
Included – Bayerische Motoren Werke (BMW)
Reason – BMW’s strong R&D investments strengthens its position in the premium electric vehicles markets, as such sales of electric/hybrid vehicles from 2016 to 2017 grew by 66%.
Excluded – Volkswagen AG
Reason – To date, VW has been associated with a high-profile scandal in which the company admitted to using an emissions testing ‘defeat device’ in diesel vehicles allowing emissions of up to 40 times more than the approved levels.