BetaShares Global Sustainability Leaders ETF (ASX: ETHI)

Product Name	BetaShares Global Sustainability Leaders ETF (ASX: ETHI)
Issuer	BetaShares
Category	Investment
Type	Exchange Traded Fund - ETF (inc. ETP)
Target	Retail, Wholesale, Institutional
Certified Since	2017

Asset Classes	International equities
Markets	New Zealand, Australia
Investment Approaches	Negative Screening, Positive Screening
It Includes:	Impact investments Renewable energy and energy efficiency Sustainable transport No specific themes More sustainable companies
It has some level of screening for:	Alcohol Armaments Fossil fuels Gambling Pornography Tobacco
It fully excludes:	Animal cruelty Human rights abuses Labour rights violations Nuclear power
Broker	Responsible Returns
URL	https://www.responsiblereturns.com.au/investment-options/betashares-global-sustainability-leaders-etf-asx-ethi/profile

Overview

ETHI provides investors with a low-cost and easy way to obtain exposure to 200 large global stocks (excluding Australia) which are climate change leaders and which are not materially engaged in activities deemed inconsistent with responsible investment considerations. The Fund owns stocks that have been identified as “Climate Leaders” that have also passed other eligibility screens designed to exclude companies with direct or significant exposure to the fossil fuel industry or engaged in other activities deemed inconsistent with responsible investment considerations.

Description

ETHI focuses on:

a) Climate leaders are companies that have carbon efficiency that places them in the top one-third of companies in the respective industry, or are superior performers in relation to "Scope 4" carbon emissions (also known as "avoided emissions").

Carbon impact: calculated based on the total greenhouse gas emissions from a company's operations, fuel use, supply chain and business activities, divided by its annual revenue.
Avoided emissions: superior performers are those companies involved in commercialising technologies that have net positive climate benefits through substantial greenhouse gas emission reductions (e.g., primary business activities in renewable energy, energy efficiency, sustainable agriculture and land use, and carbon sequestration).
Fossil Fuel Screen is applied to the universe of Climate Leaders which removes companies with any direct involvement in the fossil fuel industry, as well as companies with material indirect exposure and those with particularly high use of fossil fuels.

b) A wide range of ESG screens - Excludes companies that are engaged in other activities deemed inconsistent with responsible investment considerations

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 re-certified ETHI based on BetaShares’ formal commitment to disclose stewardship activities and outcomes within an agreed timeframe.

Performance results

Product holdings

Product documentation

Supporting documents

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The products featured on this site have all achieved certification under the Responsible Investment Association Australasia’s (RIAA) Responsible Investment Certification Program.

Transparency & Verification

What sets these investment products aside from regular ones on the market is they all have some type of responsible or ethical strategy applied to them.

At a minimum, their issuers explain these strategies in public documents and open their offices and books to third party verifiers who check these strategies are implemented according to what you read about them publicly.

You can also click through to see the underlying managers and / or stock holdings in each certified product as well as access a certified product’s recent performance results.

Stewardship & Impact

In July 2019, we lifted our requirements of certified products which we are phasing in over 18 months.

We now require that issuers have organisation-wide commitments to responsible investing and they exercise their responsibilities as stewards of your money - through engaging with companies to improve sustainability performance and voting on shareholder resolutions where possible. All certified products now need to at least avoid significant harm and their issuers will annually report against any sustainability-based claims made by their products. This uplift in program standards is part of our passion for, and on-going commitment to, responsible and ethical investing.

Even though we're lifting the bar, we know your convictions to doing good with your money may be higher and so we have served up our member's certified products with a large dose of transparency and independent verification, so that you can draw your own conclusions from reliable information and choose investments that best suit your individual needs.

*Information Disclosures

While all reasonable efforts are undertaken to ensure information and links on site are current there may be instances where information and documents are updated during the course certification (eg. PDS, Fact Sheet). Certified product issuers are required to update this information as soon as possible on the Responsible Returns site, but there may be some extenuating circumstances impacting timeframes.

The certification program may also assess information provided for certification based on proposed future changes to a responsible investment process that is in-line with Responsible Investment Association Australasia’s (RIAA) Responsible Investment Certification Program criteria. In such instances, members are similarly required to update this information on Responsible Returns within an agreed future timeframe. Old document versions may be reflected on site until this process is finalised.

BetaShares Global Sustainability Leaders ETF (ASX: ETHI)

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