VanEck Hydrogen Economy UCITS ETF

Has policies that consider (environmental and social) sustainability issues. Strategies vary but are likely to consider environmental issues like climate change, carbon emissions, biodiversity loss, resource management, environmental impacts; and social issues like equal opportunities, human rights, labour standards, diversity and adherence to internationally recognised codes. See individual entry information.

Aim to support the shift to a sustainable future. See eg https://www.transitionpathwayinitiative.org/

Has policies which relate to environmental issues. These will typically set out their stance on issues such as pollution, climate change, resource management, biodiversity loss, carbon emissions, plastics and/or additional environmental impacts. Strategies vary.

Has documented policies explaining the approach to environmental damage and pollution. Strategies vary.

Has a written policy or theme focused on waste management - typically to support or encouraging higher levels of recycling and better efficiency / reducing waste. Strategies vary.

Has a written biodiversity policy or theme typically aimed at supporting, encouraging and improving environmental protection and safeguarding the natural world (sometimes referred to as 'natural capital'). See eg https://www.un.org/en/climatechange/science/climate-issues/biodiversity

Has policies designed to address involvement in irresponsibly managed palm oil or other forms of deforestation (typically exclusion led). Strategies vary.

Avoids assets that are involved in illegal deforestation. This may relate to palm oil, cattle farming or other areas. Strategies vary.

Has a policy which sets out their expectations for how investee assets should manage their use of water - likely to focus on high users.

Has policies (documented strategies that explain their position) on climate change related issues such as greenhouse gas/carbon emissions, net zero, transitioning to lower carbon. Strategies vary.

Avoid investment in major coal, oil and/or gas (extraction) companies. Strategies vary.

Avoid investing in companies / assets with coal, oil and gas reserves. See individual entry information for further details.

Has a policy which describes the avoidance or limited investment in the nuclear industry. Strategies vary.

Has a policy or theme which sets out their position on investment in companies researching/developing hydrogen as an energy solution.

Has policies which set out their approach to social issues (e.g. human rights, labour standards, equal opportunities, child labour and/or adherence to internationally recognised codes such as the UN Global Compact). Strategies with social policies typically avoid companies with low standards and/or work to encourage higher standards. See fund information for detail.

Has a labour standards policy - likely to mean they will invest in / favour companies that have higher employment related standards and avoid those with low standards. Strategies vary. See eg https://www.ilo.org/international-labour-standards

Companies are excluded if they are involved in any aspect of the production chain for tobacco products, including cigarettes, vaping, e-cigarettes, chewing tobacco and cigars.

Companies are excluded if they make more than 5% of their revenue from the manufacture, sale or distribution of tobacco products including cigarettes, vaping, e-cigarettes, chewing tobacco and cigars.

Excludes companies which make controversial weapons such as landmines, cluster munitions and chemical weapons.

Avoids companies that manufacture weapons intended specifically for military use. Strategies vary - may or may not include non-strategic military products.

Avoids companies with military contracts. This may include medical supplies, food, safety equipment, housing, technology etc

Has a written civilian firearms exclusion policy - meaning that they will not invest in companies that make (or perhaps also sell) handguns made for non-military users.

Avoids companies with significant involvement in the gambling industry. Some may allow a small proportion of revenues to come from this area.

Has policies relating to human rights issues. Typically require companies to demonstrate higher standards, although some managers work to encourage improvements. Investee companies are often judged against internationally agreed norms or standards. Strategies vary.

Has policies to avoid companies that employ children.

Has policies or a theme that relates to the responsible management of supply chains. These may relate to employment issues, notably people employed by their suppliers, as well as the sourcing of materials and products.

Does not invest in / excludes 'sovereigns' - debt issued by governments. See eg https://www.investopedia.com/terms/s/sovereign-debt.asp

Has policies that relate to corporate governance issues such as board structure, executive remuneration, bribery and/or corporate corruption. These funds will typically avoid companies with poor practices. Strategies vary.

Avoids investing in companies with poor governance practices.(e.g. board structure, management practices etc.) Views may however vary on what counts as 'poor' practices - and funds may not immediately divest as they may prefer to work to encourage higher standards.

Exclude companies that are subject to United Nations sanctions. See eg https://main.un.org/securitycouncil/en/content/un-sc-consolidated-list

Has policies explaining how managers will respond to assets / companies that do not comply with relevant anti-bribery and anti-corruption standards or laws. Strategies vary; options include stewardship/ engagement and divestment - or a combination.

Has policies explaining how the managers take into account digital/cyber security related risks. Cyber policies will typically favour companies with higher standards or that are helping to solve problems - but strategies vary.

Find fund / asset managers that factor in 'environmental, social and governance' issues as part of their investment decision making process. A focus on 'ESG' typically means a fund is carrying out additional research to help reduce ESG related risks. It does not necessarily mean a focus on sustainability. Strategies vary. See fund literature.

Invests more than half of their money in smaller or medium sized companies. (i.e. below around £5 -10 billion)

Invests in a combination of small, medium and larger (potentially multinational) companies / assets.

Invests >25% of their capital in companies where a major part of their business is focused on helping to address environmental or social challenges.

Invests >50% of their capital in companies where a major part of their business is focused on helping to address environmental or social challenges.

Invests in between 5-25% of capital in assets which meet the EU Taxonomy requirements. This will typically require adding up the proportion of each individual company's activity that is regarded as 'green' so that the manager can produce an overall total for the whole fund or portfolio.

Has policies that aim to help or support the delivery of positive social or environmental impacts (or societal/real world outcomes) by investing in companies they regard as beneficial to people and / or the planet. Strategies vary.

Directs investment towards companies where a major part of their business is about solving environmental challenges. e.g. companies helping to address climate change.

Invests more than 50% of capital in assets which are regarded as being significantly focused on providing solutions to environmental or social challenges. Strategies vary.

Has principle 'ethical approach' to avoid companies by using negative screening criteria. Strategies vary.

Has a single resource themed focus in their investment strategy on a single natural 'resource' eg water.

Makes stock selection (and ongoing management) decisions based on ESG data or company ratings (normally supplied by third parties) rather than focusing on what individual companies do, how they operate or their plans for the future

Only uses an investment index to direct where they can invest. Fund strategies and indices vary.

Aims to avoid companies that do significant harm. This originates from the EU’s sustainable finance ‘DNSH’ (do no significant harm) work, which is not necessarily used by UK investors.

Investment selection process uses internationally agreed 'norms' (e.g. United Nations Global Compact - UNGC - or the UN Sustainable Development Goals - SDGs) alongside additional SRI criteria such as positive or negative stock selection policies and/or stewardship strategies.

Invests in assets which have an ESG strategy (which is typically focused on avoiding companies that pose environmental, social or governance related risks) together with additional criteria such as positive and/or negative screens, themes and stewardship strategies.

Uses internationally agreed standards, conventions and 'norms' to help direct investment decisions (e.g. the UN Global Compact, UN Sustainable Development Goals).

Publish explanations of their ethical, social and/or environmental policies online (i.e. investment decision making strategies/ buy/sell &/or asset management strategies).

Does not use stock lending for performance or risk purposes.

All assets - except cash - meet the sustainability criteria published in strategy documentation.

Designed to meet the needs of individual investors with an interest in sustainability issues.

Designed to meet the needs of individual investors with an interest in ‘Impact investment’ which help or support the delivery of positive social or environmental impacts (or societal/real world outcomes) by investing in companies regarded as beneficial to people and / or the planet. Strategies vary.

Find options classified under Article 9 of the EU’s SFDR (Sustainable Finance Disclosure Requirements). Article 9 of the SFDR applies to financial products that have sustainable investment 'objectives' - including emissions reduction objectives. (These may currently be referred to as 'impact' funds or aiming to deliver clear, specific positive outcomes.) These rules do not currently apply in the UK so product managers may leave this field blank.

Find fund / asset management companies that have signed up to the UN backed 'Principles of Responsible Investment'.

Find fund / asset management companies that will supply information about their sustainable and responsible investment activity on request.