Fund Complex: SPDR Series
Management Company: SSGA FM
Funds Affected: (1) SPDR Kensho Clean Power ETF, (2) SPDR MSCI Fossil Fuel Free ETF
Sustainable Investing Strategy: (1) Thematic, (2) Thematic and exclusions
Summary:
(1) The fund invests in companies whose products and services are driving innovation behind clean power. These include companies that offer products and services related to manufacturing the technology for renewable energy (solar, wind, hydro, geothermal), or are a necessary component of the supply chain for such products and services.
(2) Companies that are considered “fossil fuel reserves free,” are determined by the screening methodology used by the MSCI, the index provider. Fossil fuel reserves are defined as proved and probable coal, oil and/or natural gas reserves used for energy purposes, but do not include metallurgical or coking coal, which is primarily used in connection with steel production. Excluded are companies in the Energy Sector, Utilities Sector or Diversified Metals & Mining Sub-Industry, as classified by the Global Industry Classification Standard (GICS), that own fossil fuel reserves. All other companies classified by GICS that own fossil fuel reserves and derive revenue from business segments associated with energy application of fossil fuels are also excluded. Examples of business segments associated with energy application of fossil fuels include thermal coal mining, oil and gas exploration and production and downstream activities. For purposes of determining which companies are excluded, MSCI consults information disclosed by companies in sources including company publications, other public records, and third party data providers.
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