Description

The investment objective of this ETF is to replicate the returns of the Bloomberg MSCI EUR Corporate and Agency Green Bond Index. This index is designed to represent the market for Euro-denominated corporate and agency green bonds that hold an investment-grade rating. Each bond must have a minimum outstanding value of EUR 300 million, and no single issuer can exceed a 5% weighting within the index. To be included, bonds must satisfy stringent green bond eligibility criteria. These include clearly defined use of proceeds, a robust process for evaluating and selecting green projects, careful management of the proceeds, and continuous reporting on the environmental impact resulting from how the funds are used. Furthermore, certain issuers are explicitly excluded based on strict environmental, social, and governance (ESG) standards. This includes companies involved in the production of controversial weapons (civilian and nuclear) or tobacco. Issuers with an MSCI ESG Rating of 'CCC' or those that are unrated are also excluded. The index also bars companies that generate revenue beyond certain thresholds from thermal coal, oil sands extraction, civilian firearms, or tobacco. Finally, any issuer with an MSCI ESG Impact Monitor score below 1 (classified as “Red”) is ineligible. For comprehensive details regarding the index and its methodology, please refer to the index administrator's website at: https://www.bloombergindices.com/