INDEX SCREEN DEFINITIONS FOR THE ESG ADVANCED FIXED INCOME SUITE

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 Companies that produce, direct, or publish adult entertainment materials; companies with 5% or more aggregate revenue from production, distribution, or retail.
Alcohol Companies classified as a “Producer” that derive 5% or more in revenue from manufacturing, distributing, retailing, licensing, and supplying alcoholic products. Companies classified as a “Producer” that derive USD 500 million or more in revenue from manufacturing, distributing, retailing, licensing, and supplying alcoholic products. All companies deriving 15% or more aggregate revenue from the manufacture, distribution, retailing, licensing, and supply of alcoholic products.
Civilian firearms Companies that manufacture, derive 5% or more aggregate revenue or USD 20 million or more revenue from the production and distribution (wholesale or retail) of firearms or small arms for civilian use.
Controversial weapons Companies that manufacture cluster munitions whole weapons systems, components, or delivery platforms. Companies that manufacture landmines whole systems or components. Companies involved in the production of depleted uranium (DU) weapons, ammunition, and armor, including companies that manufacture armor piercing, fin stabilized, discarding sabot tracing rounds (APFSDS-T); Kinetic Energy Missiles made with DU penetrators; and DU-enhanced armor, including composite tank armor.
Conventional weapons Companies deriving 5% or more revenue from the production of conventional weapons or 10% or more aggregate revenue from weapons systems, components, and support systems and services.
For profit prisons Companies with 50% or more revenue from involvement in the operation of “For profit prisons” or the provision of integral services to these types of facilities.

Fossil fuels
Issuers classified as Class 3 Energy are excluded. Companies with an industry tie to fossil fuels (thermal coal, oil and gas) – in particular, reserve ownership, related revenues and power generation. This list does not include companies providing evidence of owning metallurgical coal reserves.
Gambling Companies with 5% or more revenue from ownership and operation of gambling facilities, or with at least USD 500 million revenue or 15% aggregate revenue from ownership or operation, provision of key products and services, and licensing gambling-related business activities.
Genetically modified organisms (GMOs) Companies with any revenue from genetically modifying plants and other organisms intended for agriculture or human consumption.

Nuclear power
Companies that own or operate nuclear power plants or active uranium mines. Companies that are involved in uranium enrichment and processing or the design and engineering of nuclear power reactors. Companies deriving 15% or more aggregate revenue from ownership or operation of nuclear power plants and supply of key nuclear-specific products or services.
Nuclear weapons Companies that manufacture nuclear warheads and/or whole nuclear missiles, components, delivery platforms or provide auxiliary services related to nuclear weapons.

Palm oil
Companies deriving any revenue from cultivating oil palm trees and harvesting fresh fruit bunches (FFBs) used to produce palm oil products.
Predatory lending Companies with 5% or more revenue from products and services associated with certain controversial lending practice.
Tobacco Manufacturers; Companies with 5% or more aggregate revenue from manufacture, distribution, retailing, licensing, and supply tobacco products.

Please refer to the respective index methodology document for more information.