INDEX SCREEN DEFINITIONS FOR THE iSHARES MSCI KLD 400 SOCIAL ETF

Many of our iShares sustainable ETFs seek to track an index with business involvement screens. Business involvement screens seek to remove exposure to controversial business activities that may pose risks or violate an investor’s preferences. Learn more about the specific screens below.

 

SCREEN DEFINITION
Adult entertainment All companies deriving 5% or more revenue from the production of adult entertainment materials. All companies deriving 15% or more aggregate revenue from the production, distribution and retail of adult entertainment materials.
Alcohol All companies deriving 5% or more revenue from the production of alcohol-related products. All companies deriving 15% or more aggregate revenue from the production, distribution, retail and supply of alcohol-related products.
Civilian firearms All companies with any tie to Civilian Firearms, covering the production and distribution (wholesale or retail) of firearms or small arms ammunitions intended for civilian use, as well as ownership of or by another company with involvement. It does not include companies that cater to the military, government, and law enforcement markets.
Controversial weapons All companies with any tie to Controversial Weapons (cluster munitions, landmines, depleted uranium weapons, biological/chemical weapons, blinding lasers, non-detectable fragments and incendiary weapons), as defined by the methodology of the MSCI Ex-Controversial Weapons Indexes.
Conventional weapons All companies deriving 5% or more revenue from the production of conventional weapons and components. All companies deriving 15% or more aggregate revenue from weapons systems, components, and support systems and services.
Fossil fuel extraction All companies deriving any revenue (either reported or estimated) from thermal coal mining or unconventional oil and gas extraction.
  • Thermal Coal Mining: Revenue from the mining of thermal coal (including lignite, bituminous, anthracite and steam coal) and its sale to external parties. It does not cover revenue from metallurgical coal; coal mined for internal power generation (e.g. in the case of vertically integrated power producers); intra-company sales of mined thermal coal; and revenue from coal trading.
  • Unconventional Oil & Gas Extraction: Revenue from oil sands, oil shale (kerogen-rich deposits), shale gas, shale oil, coal seam gas, and coal bed methane. It does not cover all types of conventional oil and gas production including Arctic onshore/offshore, deep water, shallow water and other onshore/offshore.
Fossil fuel reserves ownership All companies with evidence of owning proven & probable coal reserves and/or proven oil and natural gas reserves used for energy purposes, as defined by the methodology of the MSCI Global Ex Fossil Fuels Indexes.
Gambling All companies deriving 5% or more revenue from ownership of operation of gambling-related business activities. All companies deriving 15% or more aggregate revenue from gambling-related business activities.
Genetically modified organisms (GMOs) All companies deriving 5% or more revenue from activities like genetically modifying plants, such as seeds and crops, and other organisms intended for agricultural use or human consumption.

Nuclear power
All companies generating 5% or more of their total electricity from nuclear power in a given year. All companies that have 5% or more of installed capacity attributed to nuclear sources in a given fiscal year. All companies deriving 15% or more aggregate revenue from nuclear power activities.
Nuclear weapons All companies that manufacture nuclear warheads and/or whole nuclear missiles. All companies that manufacture components that were developed or are significantly modified for exclusive use in nuclear weapons (warheads and missiles). All companies that manufacture or assemble delivery platforms that were developed or significantly modified for the exclusive delivery of nuclear weapons. All companies that provide auxiliary services related to nuclear weapons. All companies that manufacture components that were not developed or not significantly modified for exclusive use in nuclear weapons (warheads and missiles) but can be used in nuclear weapons. All companies that manufacture or assemble delivery platforms that were not developed or not significantly modified for the exclusive delivery of nuclear weapons but have the capability to deliver nuclear weapons. All companies that manufacture components for nuclear-exclusive delivery platforms.
Thermal coal power All companies deriving 5% or more revenue (either reported or estimated) from thermal coal-based power generation.
Tobacco All companies classified as a “Producer." All companies deriving 5% or more aggregate revenue from the production, distribution, retail, supply and licensing of tobacco-related products.

Please refer to the index methodology for more information