Invesco FTSE All Share Screened & Tilted UCITS ETF

Sustainable, Responsible &/or ESG Policy:

In order to achieve the investment objective, the Fund employs a replication method that looks to invest as far as possible and practicable in the constituents of the Reference Index. As such, the fund replicates the Sustainable, Responsible &/or ESG Policy embedded in its Reference Index.

This Fund promotes environmental and/or social characteristics but does not have as its objective sustainable investment, however the Fund intends to make sustainable investments. The environmental and/or social characteristics promoted by the Fund are to gain exposure to issuers demonstrating a robust ESG profile, i.e. issuers with limited/ no involvement in certain business activities and with no involvement in severe ESG controversies. The Fund also aims to gain increased exposure to those issuers generating revenue from green projects, and those that exhibit lower levels of carbon emissions and fossil fuel reserves, relative to the companies that comprise the FTSE All-Share ex Investment Trusts Index (the “Parent Index”). The Fund achieves this by tracking the Reference Index, which has a methodology that is consistent with attaining the environmental and social characteristics promoted by the Fund.

Through a combination of the exclusion criteria detailed in the methodology of the Reference Index and the qualitative assessment and/or engagement of Invesco’s ESG team, it is ensured that investee companies follow good governance practices. The Fund takes into account the PAI indicators defined in Table 1 of Annex I of the RTS and ensures alignment with the OECD guidelines and UNGP, thereby ensuring that the sustainable investments do not cause any significant harm to environmental and/or social objectives.

A minimum of 90% of the Fund’s NAV will be selected according to the binding elements of the investment strategy. Up to 10% of the Fund’s NAV may not be aligned with the environmental and/or social characteristics of the Fund, this portion of the Fund may be invested in financial derivative instruments for hedging and/or efficient portfolio management purposes and cash for ancillary liquidity purposes. A minimum of 10% of the Fund’s NAV will be in sustainable investments.

Process:

The Fund’s objective is to achieve the net total return performance of the Reference Index, less fees, expenses and transaction costs. In order to achieve the investment objective, the Fund will employ a replication method that looks to invest as far as possible and practicable in the constituents of the Reference Index. The Fund intends to replicate the Reference Index by holding all of its constituent securities in a similar proportion to their weightings in the Reference Index.

The Index methodology of the Reference Index applies exclusion criteria to the FTSE  All-Share ex Investment Trusts Index (the “Parent Index”) to exclude securities that:

• have faced very severe controversies pertaining to ESG issues (including UN Global Compact violations);
• are involved (as defined by the Index Provider) in any of the following business activities: Arctic oil and gas exploration, adult entertainment, controversial weapons, small arms, gambling, military contracting, nuclear power, oil sands, thermal coal, recreational cannabis and tobacco ; and
• do not have a FTSE Russell ESG Rating.

The Reference Index then applies a target exposure approach that assigns re-weighting factors to each of the remaining eligible securities. These factors are determined such that the Reference Index targets as near as possible:

• an uplift in the FTSE Russell ESG Rating, relative to the Parent Index, of the minimum of either 10% or one market cap weighted standard deviation;
• an increase in the weighted average percentage of revenue generated by green projects of 50%, relative to the Parent Index, based on data available to the Index Provider;
• a reduction in both the weighted average carbon emissions intensity (measured as Greenhouse Gas (GHG) Protocol Scope 1 and 2 emissions and calculated as operational carbon emissions in metric tons per million dollars revenue) and the weighted average fossil fuel reserve intensity of 50%, relative to the Parent Index, based on data available to the Index Provider.

The Reference Index is subject to the following constraints when applying the target exposure approach:

1) at each quarterly rebalance the two-way turnover (i.e. the sum of the individual weighting changes across all index constituents) of the Reference Index will not exceed 10%, unless it is not possible for the resultant target exposures, detailed above, to be achieved without a significant deviation from the targeted level for each, in which case this turnover constraint is relaxed in stages, whereby it is first set to 15% and then removed entirely if no feasible solution can be found. This process is set out in detail in the index methodology linked herein;

2) to limit industry divergence, aggregate Industry Classification Benchmark (“ICB”) industry weightings will not deviate by more than 2% from those in the Parent Index;

3) the weight of each individual constituent will not deviate by more than 3% from its weight in the Parent Index and will not exceed its weight in the Parent Index multiplied by a factor of five; and 4) the weight of each individual constituent will be capped at 7.5% and a floor of 0.05% will be applied such that eligible constituents with weights below the floor are removed. These conditions mean that any constituent with a weight in the Parent Index of less than 3% could be completely removed from the Reference Index.

The index methodology of the Reference Index includes good governance criteria whereby companies are assessed against indicators such as sound management structures, employee relations, remuneration of staff and tax compliance. Companies that are deemed not to meet good governance practices according to the methodology of the Reference Index will be excluded.

In addition to the assessment of good governance practices of companies by the index provider, the Investment Manager also implements a review of the constituents of the Reference Index at each rebalance to identify any gaps from a data coverage perspective in the methodology of the Reference Index. In the unlikely event that a company is not assessed in relation to good governance practices by the index provider, the Investment Manager and Invesco’s ESG team implements an internal process to review publicly available data and perform checks against UN Global Compact principles to verify that those companies follow good governance practices.

Resources, Affiliations & Corporate Strategies:

Investment Stewardship at Invesco

Invesco’s dedicated Investment Stewardship team comprises over 40[1] stewardship specialists who provide expertise and support to investment teams who manage products in line with client objectives, stated investment strategies and applicable regulatory requirements. The team serves as a strategic resource to support, inform and guide Invesco’s investment teams globally on stewardship activities, including corporate governance, proxy voting and engagement, sustainable investing, and thematic investment research. Our client-centric approach is rooted in our commitment to long-term value creation for clients.

We view stewardship as a core responsibility of asset management. It encompasses our duty to act in the best interests of our clients, using our investment expertise and resources to support outcomes aligned with our clients’ objectives. This includes engaging with companies, voting proxies on behalf of clients, contributing to industry dialogue, and transparently reporting on our stewardship activities, all of which is conducted in accordance with applicable regulatory requirements and client commitments. For relevant strategies and clients, it also includes our sustainable investing capabilities.

Our Organizational Structure

The Investment Stewardship team is organized across four pillars to support investment teams across asset classes and geographies:

 Corporate Governance & Advisory

This team provides governance expertise and supports stewardship across global investment teams. The core responsibility of this team is to support investment teams in considering corporate governance factors within their investment process and to contribute to proxy voting decisions in alignment with Invesco’s stewardship principles. The team collaborates with investment teams in conducting corporate governance engagements and actively participates in industry-wide initiatives and regulatory consultations. It includes our proxy operations and voting capabilities, which execute proxy voting across thousands of shareholder meetings annually.

Stewardship Strategy, Operations & Reporting

This team ensures investment stewardship business planning aligns with Invesco’s firm-wide strategy, incorporating the firm’s priorities into our roadmap and project prioritization. It is responsible for strategy execution, operational alignment, and organizational efficiency across the Investment Stewardship department. The team manages global stewardship workflows, policy implementation, external reporting, and communications, while maintaining operational integrity and regulatory compliance.

Investment Stewardship Analytics

This team supports global stewardship through analytics, portfolio screening, and data vendor management. This team ensures investment teams have access to high-quality, decision-useful information. It also maintains data systems to streamline proxy voting and engagement workflows.

Sustainable Investing Services (SIS)

This team provides expertise and insights on environmental and social topics to support investment decision-making by conducting proprietary research and contributing to meeting client objectives for relevant products and strategies. It partners with investment teams, distribution, and clients to support engagement on sustainability topics and to meet strategy and client-specific commitments.

Global Collaboration and Governance

The Investment Stewardship team includes professionals located in North America, Asia Pacific, and EMEA, providing localized support and analysis to our investment teams across the globe. Our stewardship professionals collaborate closely with investment teams, providing support, insights, and analysis while investment teams maintain discretion on portfolio decisions. In addition, Invesco has dedicated specialists within individual investment teams across the globe who are closely connected with the Investment Stewardship team.

Our governance structure enables oversight and accountability through the Investment Stewardship Leadership Committee, comprised of senior members of the firm from various functions. This ensures that our investment teams receive appropriate guidance on stewardship considerations that are relevant to their investment strategies and processes. We also monitor external service and data providers through regular reviews and audits, meet routinely with major vendors to align methodologies and resolve issues, and increasingly automate data controls (timeliness, conformity, completeness and accuracy) for sources used in portfolio monitoring and compliance. Where gaps arise, we work to resolve them and continue to evaluate new data sets and approaches as sustainability‑related data evolves.

[1] Figure as of 31 March 2026. 

SDR Labelling:

Not eligible to use label (out of scope)