BetaShares Ethical Diversified Growth ETF (ASX: DGGF)

Product Name

BetaShares Ethical Diversified Growth ETF (ASX: DGGF)

Issuer

BetaShares

Category

Investment

Type

Exchange Traded Fund - ETF (inc. ETP)

Target

Retail, Wholesale, Institutional

Certified Since

2021

Asset Classes

Diversified / Multi-asset

Markets

New Zealand, Australia

Investment Approaches

Negative Screening, Positive Screening

It Includes:

  • Riaa icons 14 Education
  • Riaa icons 32 Green property
  • Riaa icons 12 Healthcare and medical products
  • Riaa icons 11 Impact investments
  • Riaa icons 10 Renewable energy and energy efficiency
  • Riaa icons 15 Social and sustainable infrastructure
  • Tree green background Sustainable land and agricultural management
  • Riaa icons 13 Sustainable transport
  • Riaa icons 31 Sustainable water
  • Investment2 More sustainable companies

It has some level of screening for:

  • Riaa icons 41 Alcohol
  • Riaa icons 36 Armaments
  • Riaa icons 33 Fossil fuels
  • Riaa icons 42 Gambling
  • Riaa icons 99 Pornography
  • Riaa icons 35 Tobacco

It fully excludes:

  • Riaa icons 56 Animal cruelty
  • Riaa icons 52 Human rights abuses
  • Riaa icons 38 Labour rights violations
  • Riaa icons 50 Nuclear power

Overview

DGGF is built using BetaShares’ true-to-label, RIAA-certified ethical ETFs – which combine positive climate leadership screens with a broad set of ESG criteria. DGGF provides exposure to a passive blending of asset classes, including Australian and global shares and bonds, according to its strategic asset allocation.


Description


ESG considerations are taken into account in two stages of the investment process:

• Negative Screening: screens are applied to all companies (or issuers for GBND) in accordance with the detailed rules set out in the relevant index methodology. Most commonly, screens are based on the proportion of a company’s revenue derived from certain non-sustainable activities/products. For example, companies that derive more than 20% of their revenue from alcohol are excluded from FAIR.

Positive Screening -- Identification of Sustainability/Climate Leaders and Green Bonds: in addition to these negative screens applied, the BetaShares Sustainability Suite of Funds aims to invest in securities that have an actively positive impact on the environment and society. Each Fund has a slightly different positive screening process, reflecting different characteristics of the asset classes. For example, ETHI defines a ‘Climate Leader’ as a company that has a carbon efficiency that places it in the top one-third of companies in its industry (where carbon efficiency is measured by greenhouse gas emissions from a company’s operations, fuel use and supply chain, divided by its annual revenues) or is otherwise a superior performer on Scope 4 carbon emissions (also known as “avoided emissions”). Within FAIR, the positive screen has a broader focus than carbon efficiency, due to the much smaller universe of ASX-listed stocks, and the lack of carbon data outside the largest ASX-listed companies. The index methodology for FAIR identifies “Sustainability Leaders” from the universe of eligible securities, being companies that earn more than 20% of their revenues from a defined list of activities that include renewable energy, energy efficiency green-star rated buildings, education, healthcare, health and personal insurance, etc. Finally, the positive screening in GBND is to select green bonds identified by the Climate Bond Initiative (CBI).

RIAA is aware that BetaShares has not yet disclosed the activities and outcomes of the fund’s stewardship activities in line with the Responsible Investment Standard. RIAA has certified DGGF based on BetaShares’ formal commitment to disclose stewardship activities and outcomes within an agreed timeframe.

Other products certified by the Responsible Investment Association Australasia (RIAA)

BetaShares Australian Sustainability Leaders ETF (ASX: FAIR)

BetaShares Climate Change Innovation ETF (ASX: ERTH)

BetaShares Ethical Diversified Balanced ETF (ASX: DBBF)

BetaShares Ethical Diversified High Growth ETF (ASX: DZZF)

BetaShares Global Sustainability Leaders ETF (ASX: ETHI)

BetaShares Global Sustainability Leaders ETF – Currency Hedged (ASX: HETH)

BetaShares Sustainability Leaders Diversified Bond ETF - Currency Hedged (ASX: GBND)

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