Vanguard ESG North America All Cap UCITS ETF
SRI Style:
Pending
SDR Labelling:
Not eligible to use label (out of scope)
Product:
ETF
Fund Region:
USA
Fund Asset Type:
Passive / Index
Launch Date:
16/08/2022
Last Amended:
Jun 2026
Dialshifter (
):
Fund/Portfolio Size:
£225.56m
(as at: 31/03/2026)
Total Screened Themed SRI Assets:
£53189.40m
(as at: 31/03/2026)
Total Responsible Ownership Assets:
£53189.40m
(as at: 31/03/2026)
Total Assets Under Management:
£9040215.81m
(as at: 31/03/2026)
ISIN:
IE000L2ZNB07, IE000O58J820
Contact Us:
Objectives:
This Fund seeks to track the performance of the FTSE North America All Cap Choice Index (the “Index”).
Sustainable, Responsible
&/or ESG Overview:
The Vanguard ESG North America All Cap UCITS ETF tracks the FTSE North America All Cap Choice Index. The index is constructed from the FTSE North America All Cap Index (the North America Parent Index) which is then screened for certain environmental, social and corporate governance criteria by FTSE.
Primary fund last amended:
Jun 2026
Information directly from fund manager.
Fund Filters
Sustainability - General
Aim to encourage higher sustainability standards through responsible ownership / stewardship / engagement / voting activity
Use the UN Global Compact to inform or help direct where they can or cannot invest. Will typically not invest in companies with significant breaches (low standards) - strategies vary. (The UNGC covers a wide range of issues - search 'UNGC'). See https://unglobalcompact.org/
Environmental - General
Options that limit or 'reduce' their exposure to carbon intensive industries (ie sectors which are major contributors to climate change). Strategies vary.
Nature & 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.
Climate Change & Energy
Avoid investment in major coal, oil and/or gas (extraction) companies. Strategies vary.
Avoid companies involved in fracking and tar sands - which are widely regarded as controversial methods of oil and gas extraction. Strategies vary.
Avoid companies that are involved in extracting oil from the Arctic regions.
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.
Excludes companies and other assets with direct involvement in fossil fuel exploration (eg coal, oil and gas companies)
Ethical Values Led Exclusions
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 that produce alcohol. Strategies vary; some may allow a small proportion of revenue to come from this area.
Avoids companies with significant involvement in the gambling industry. Some may allow a small proportion of revenues to come from this area.
Avoids companies that derive significant income from pornography and related areas. Strategies vary.
Human Rights
Has policies to avoid companies that employ children.
Has a policy which excludes assets with involvement in Modern Slavery
Gilts & Sovereigns
Avoids investing in 'some' gilts or government bonds. Strategies vary, but this may relate to avoiding specific countries or particular reasons for bond issuance. 'Green gilts' for example would be likely to be acceptable.
Does not invest in, or excludes, gilts and/or government bonds.
Does not invest in / excludes 'sovereigns' - debt issued by governments. See eg https://www.investopedia.com/terms/s/sovereign-debt.asp
Banking & Financials
Can include banks as part of their holdings / portfolio.
Invests in financial instruments (cash, derivatives and / or foreign exchange) issued by banks. Strategies vary.
May invest in insurance companies.
Governance & Management
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.
Aim to encourage higher ESG standards through responsible ownership / stewardship / engagement /voting activity
Product / Service Governance
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.
Asset Size
Invests more than half of their money into what are commonly regarded as 'large companies'. This will typically mean that the market capitalisation (or value) of the companies they hold is in excess of £5 to £10 billion.
Invests in a combination of small, medium and larger (potentially multinational) companies / assets.
How The Fund/Portfolio Works
Has principle 'ethical approach' to avoid companies by using negative screening criteria. Strategies vary.
Only uses an investment index to direct where they can invest. Fund strategies and indices vary.
Focuses on the careful management of environmental, social and governance (ESG) related risks - typically by avoiding or being underweight in companies seen as posing major risks in these areas (i.e. not necessarily by using themes, exclusions etc).
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.
Unscreened Assets & Cash
Holds between 70-79% of assets which align to the sustainability objectives; which are not being held purely for risk management purposes, such as derivatives and cash equivalent assets.
Holds between 80-89% of assets which align to the sustainability objectives; which are not being held purely for risk management purposes, such as derivatives and cash equivalent assets.
Holds at least 90% of assets which align to the sustainability objectives; which are not being held purely for risk management purposes, such as derivatives and cash equivalent assets.
Only invests in cash to aid the practical management (buying and selling) of assets and so do not use additional financial instruments.
All assets - except cash - meet the sustainability criteria published in strategy documentation.
Intended Clients & Product Options
Designed to meet the needs of individual investors with an interest in sustainability issues.
Available via a tax efficient ISA product wrapper.
Only applicable for DFM’s & portfolio providers. Finds those that offer an SRI / ESG portfolio option
Only applicable for DFM’s & portfolio providers. Find service providers who offer multiple SRI / ESG portfolio options
Labels & Accreditations
Find options classified under Article 8 of the EU’s SFDR (Sustainable Finance Disclosure Requirements). Article 8 of the SFDR is a set of requirements that apply to financial products that 'promote' environmental or social characteristics together with high governance. These rules do not currently apply to UK products so many managers may leave this field blank.
Fund Management Company Information
About The Business
Finds fund / asset management companies that have a published company wide stewardship, engagement and / or responsible ownership policy or strategy that covers all investments. Stewardship typically involves encouraging higher ESG standards through voting and dialogue.
Find fund / asset management companies that actively encourage higher 'environmental, social and governance' and / or 'sustainable and responsible investment' practices across investee companies - typically where the aim is to encourage positive change that is aligned with the best interests of investors. Strategies vary. See additional information and options.
Find options run by managers that apply Responsible ownership or 'Stewardship' policies to all or most of their investment assets. This means active involvement (e.g. voting, dialogue) with the companies across all or most funds, products and services.
Find fund / asset management companies that consider environmental, social and governance (ESG) issues when deciding whether or not to invest in a company for all / almost all of their funds and other assets. This is increasingly seen as part of sound risk management.
Finds organisations / fund managers that have an in-house (company wide) diversity improvement programme - meaning that they are working to ensure that within their own businesses they employ people from diverse backgrounds - often typically focused on ethnicity and/or sex.
Find fund / asset management companies that encourage the companies they invest in to have strong diversity, race, gender and other equality policies across all assets held, not simply screened or themed SRI/ESG funds. (ie Asset Management company wide).
Collaborations & Affiliations
Find fund / asset management companies that have signed up to the UN backed 'Principles of Responsible Investment'.
Fund management entity is a member of the Investment Association https://www.theia.org/
Resources
Find fund / asset management companies that employ people to steer and support fund managers in voting shares at company AGM's and EGMs in ways that are consistent with encouraging higher ESG/sustainability standards.
Find a fund / asset management company that directly employs specialist ESG/SRI/sustainability researchers or analysts. This allows asset managers to discuss environmental, social and governance risks and opportunities directly with companies.
Find fund / asset management companies that makes use of expert external research companies. This can help deliver specialist expertise and means resources are pooled with other investors.
Accreditations
Find fund / asset managers that are signatories to the FRC UK Stewardship Code, which sets out a framework for constructive investor / investee relations where managers are encouraged to behave like responsible, typically longer term 'company owners'.
Climate & Net Zero Transition
Find fund / asset management companies that are working with the companies they invest in to encourage reductions in carbon dioxide and other greenhouse gas emissions.
Finds organisations / fund managers that have a company wide carbon transition plan - meaning that they have plotted a path to how they will move away from activities that produce or use carbon based energy sources (that emit greenhouse gases) towards clean, alternative, renewable energy sources.
This fund / asset management company plans to achieve net zero greenhouse gas (CO2e) emissions with the help of a scheme that will lock away an amount of carbon that is equivalent to the company’s own emissions – so that the end result is ‘net zero’. Calculations and scope vary.
Find fund / asset management companies that are working to reduce their own (fund management company) carbon/greenhouse gas emissions.
Transparency
Find fund / asset management companies that publish a report detailing their responsible investment ownership - also known as 'Stewardship' - activity.
Find fund / asset management companies that publish information about their sustainable and responsible investment strategies on their company website.
Fund / asset management companies that publish a full record of how they vote their shares at AGMs (annual general meetings) and EGMs (extraordinary general meetings). Voting strategies have an important role to play encouraging higher environmental, social and governance standards.
Sustainable, Responsible &/or ESG Policy:
All of Vanguard’s equity ESG index funds and ETFs track the FTSE Global Choice Index Series. The FTSE Global Choice Index Series is a market capitalisation weighted index series with a rules-based methodology for excluding certain issuers based on their product involvement or conduct. The result is a framework for applying robust and customisable values-based exclusions to a broad market index. The index applies screens to exclude companies engaged or involved in the following activities: adult entertainment, alcohol, gambling, tobacco, cannabis, power generation from oil, gas, thermal coal and nuclear energy fossil fuels (oil, gas, thermal coal, arctic oil and gas, and oil sands), controversial weapons (chemical & biological weapons, cluster munitions, anti-personnel landmines), civilian firearms, nuclear weapons, and conventional military weapons.
The index also excludes companies that, as determined by FTSE, are involved in severe controversies related to the United Nations Global Compact Principles, which cover labour, human rights, the environment and anti-corruption.
The methodology has three levels of restrictiveness for exclusions, and companies are screened for both primary (e.g., producer/ manufacturer) and secondary (e.g., retailer/ supplier) involvement using revenue thresholds. The exception being cannabis which is only screened for primary involvement.
Least restrictive: Adult Entertainment, Alcohol and Gambling have a 5% revenue tolerance for companies with primary involvement, and a 10% tolerance for companies with secondary involvement.
Moderately restrictive: Tobacco, Cannabis and Conventional (military) Weapons have a 0% revenue tolerance for companies with primary involvement and a 5% tolerance for companies with secondary involvement. Conventional and unconventional Oil and Gas (including oil sands, arctic oil and gas extraction) have a 5% revenue tolerance across both primary and secondary involvement categories.
Most restrictive: Controversial Weapons, Civilian Firearms, Nuclear Weapons, Power Generation (from oil, gas, thermal coal and nuclear energy), Thermal Coal, Oil and Gas Reserves, Thermal Coal Extraction and Supporting Products and Services have a 0% revenue tolerance for companies with either primary or secondary involvement (with the exception of some Fossil Fuel-related activities whose exclusions are based on Industry Classification Benchmark (ICB) subsector classifications).
Below is a table summarising the exclusion principles and their respective revenue thresholds:
Resources, Affiliations & Corporate Strategies:
Vanguard does not have one centralised team responsible for ESG investment . Instead, we have various teams and groups addressing the different aspects of ESG. Please see details below on some of the teams that are responsible for various ESG considerations at Vanguard.
ESG Team, Portfolio Review Department
The regional PRD ESG teams act as centers of excellence that deploy ESG subject matter expertise and partner across the Portfolio Review Department (PRD) to drive the success of clients and the business in each region.
Each region’s ESG team and SMEs are responsible for broader ESG investing topics, such as supporting ESG regulatory implementation, ESG product oversight and ecosystem enhancements, and enterprise-wide ESG strategic initiatives.
The regional teams and SMEs stay connected on global initiatives such as ESG data and reporting, industry trends, and ESG product roadmaps. The teams closely collaborate with partners across PRD, including colleagues in Manager Search and Oversight and other product category teams. Many members of these teams commit a significant portion of time to ESG efforts as well, such as assessing the ESG competitive product landscape to inform new ESG product design and evaluating active managers on their ESG integration approaches.
In addition to ESG-dedicated roles, Vanguard continues to embed ESG considerations into existing functions to ensure ESG factors are considered alongside, not separately from, other matters important to improving the investment outcomes of our clients.
For example:
Vanguard Fixed Income Group (FIG) assesses the financial materiality of ESG risks to complement standard credit assessment. FIG’s credit research analysts also regularly meet with issuers to discuss key credit risk topics and, where applicable, raise ESG concerns.
Vanguard Investment Management & Finance Risk (IMFR) provides independent oversight and monitoring of investment risk management of sustainability risk.
Vanguard’s Investment Strategy Group conducts research on both non-ESG and ESG topics which is then shared internally for education and to inform decision-making. This research may also be published.
A list of the external organisation initiatives Vanguard currently participates in that relate to investment stewardship can be found below: (as at December 2025).
- International Financial Reporting Standards (IFRS) Sustainability Alliance [formerly the Sustainability Accounting Standards Board (SASB) Investor Alliance] (2016; Member)
- International Sustainability Standards Board (ISSB) Investor Advisory Group (IIAG) [formerly the SASB Investor Advisory Group] (2016; Member)
- The Investment Association (2016; Member)
- International Corporate Governance Network (ICGN) (2019; Member)
- Asian Corporate Governance Association (ACGA) (2021; Member)
Stewardship Codes
The UK Stewardship Code (Signatory since 2021)
SDR Labelling:
Not eligible to use label (out of scope)
Fund Holdings
Disclaimer
Important Information
Confidentiality
The information contained in this document, including attachments, is confidential information and property of Vanguard Asset Management, Limited, The Vanguard Group, Inc. and their affiliates. The information may not be divulged or communicated to any third parties without the prior written consent of Vanguard Asset Management, Limited, unless it is needed for the execution of the present document or when divulgation is required by law.
Investment Risk Information
The value of investments, and the income from them, may fall or rise and investors may get back less than they invested.
Some funds invest in emerging markets which can be more volatile than more established markets. As a result the value of your investment may rise or fall.
Investments in smaller companies may be more volatile than investments in well-established blue chip companies.
Reference in this document to specific securities should not be construed as a recommendation to buy or sell these securities, but is included for the purposes of illustration only.
ETF shares can be bought or sold only through a broker. Investing in ETFs entails stockbroker commission and a bid-offer spread which should be considered fully before investing.
Funds investing in fixed interest securities carry the risk of default on repayment and erosion of the capital value of your investment and the level of income may fluctuate. Movements in interest rates are likely to affect the capital value of fixed interest securities. Corporate bonds may provide higher yields but as such may carry greater credit risk increasing the risk of default on repayment and erosion of the capital value of your investment. The level of income may fluctuate and movements in interest rates are likely to affect the capital value of bonds.
The funds may use derivatives in order to reduce risk or cost and/or generate extra income or growth. The use of derivatives could increase or reduce exposure to underlying assets and result in greater fluctuations of the funds’ net asset value. A derivative is a financial contract whose value is based on the value of a financial asset (such as a share, bond, or currency) or a market index.
Some funds invest in securities which are denominated in different currencies. Movements in currency exchange rates can affect the return of investments.
Income may fluctuate in accordance with market conditions and taxation arrangements.
For further information on risks please see the “Risk Factors” section of the prospectus on our website at https://global.vanguard.com.
Disclaimer
This document is directed at professional investors and should not be distributed to, or relied upon by retail investors.
For further information on the funds’ investment policies and risks, please refer to the prospectus of the UCITS and to the KIID before making any final investment decisions. The KIID for this fund is available, alongside the prospectus via Vanguard’s website https://global.vanguard.com.
This document is designed for use by, and is directed only at, persons resident in the UK.
The information contained in this document is not to be regarded as an offer to buy or sell or the solicitation of any offer to buy or sell securities in any jurisdiction where such an offer or solicitation is against the law, or to anyone to whom it is unlawful to make such an offer or solicitation, or if the person making the offer or solicitation is not qualified to do so. The information in this document is general in nature and does not constitute legal, tax or investment advice. Potential investors are urged to consult their professional advisers on the implications of making an investment in, holding or disposing of units/shares of, and the receipt of distribution from any investment.
Vanguard Asset Management, Limited makes no representations or warranties as to the suitability or appropriateness of third party organisations and service providers and the services they may provide, neither is it a recommendation or advice to use them. Vanguard Asset Management, Limited is not responsible for the content of any third party websites accessed from this communication.
Vanguard Investment Series plc/Vanguard Funds plc have been authorised by the Central Bank of Ireland as a UCITS and have been registered for public distribution in certain EEA countries and the UK. Prospective investors are referred to the funds' prospectus for further information. Prospective investors are also urged to consult their own professional advisers on the implications of making an investment in, and holding or disposing shares of the funds and the receipt of distributions with respect to such shares under the law of the countries in which they are liable to taxation.
The Manager of Vanguard Investment Series plc is Vanguard Group (Ireland) Limited. Vanguard Asset Management, Limited is a distributor of Vanguard Investment Series plc.
The Manager of Vanguard Funds plc is Vanguard Group (Ireland) Limited. Vanguard Asset Management, Limited is a distributor for Vanguard Funds plc.
The Indicative Net Asset Value (“iNAV”) for Vanguard’s ETFs is published on Bloomberg or Reuters. Refer to the Portfolio Holdings Policy at https://fund-docs.vanguard.com/portfolio-holdings-disclosure-policy.pdf.
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© 2026 Vanguard Asset Management, Limited. All rights reserved.
| Fund Name | SRI Style | SDR Labelling | Product | Region | Asset Type | Launch Date | Last Amended |
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Vanguard ESG North America All Cap UCITS ETF |
Pending | Not eligible to use label (out of scope) | ETF | USA | Passive / Index | 16/08/2022 | Jun 2026 | |
ObjectivesThis Fund seeks to track the performance of the FTSE North America All Cap Choice Index (the “Index”). |
Fund/Portfolio Size: £225.56m (as at: 31/03/2026) Total Screened Themed SRI Assets: £53189.40m (as at: 31/03/2026) Total Responsible Ownership Assets: £53189.40m (as at: 31/03/2026) Total Assets Under Management: £9040215.81m (as at: 31/03/2026) ISIN: IE000L2ZNB07, IE000O58J820 Contact Us: UK_internals@vanguard.com |
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Sustainable, Responsible &/or ESG OverviewThe Vanguard ESG North America All Cap UCITS ETF tracks the FTSE North America All Cap Choice Index. The index is constructed from the FTSE North America All Cap Index (the North America Parent Index) which is then screened for certain environmental, social and corporate governance criteria by FTSE. |
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Primary fund last amended: Jun 2026 |
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Information received directly from Fund Manager |
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Fund FiltersSustainability - General
Encourage more sustainable practices through stewardship
Aim to encourage higher sustainability standards through responsible ownership / stewardship / engagement / voting activity
UN Global Compact linked exclusion policy
Use the UN Global Compact to inform or help direct where they can or cannot invest. Will typically not invest in companies with significant breaches (low standards) - strategies vary. (The UNGC covers a wide range of issues - search 'UNGC'). See https://unglobalcompact.org/ Environmental - General
Limits exposure to carbon intensive industries
Options that limit or 'reduce' their exposure to carbon intensive industries (ie sectors which are major contributors to climate change). Strategies vary. Nature & Biodiversity
Deforestation / palm oil policy
Has policies designed to address involvement in irresponsibly managed palm oil or other forms of deforestation (typically exclusion led). Strategies vary.
Illegal deforestation exclusion policy
Avoids assets that are involved in illegal deforestation. This may relate to palm oil, cattle farming or other areas. Strategies vary. Climate Change & Energy
Coal, oil & / or gas majors excluded
Avoid investment in major coal, oil and/or gas (extraction) companies. Strategies vary.
Fracking & tar sands excluded
Avoid companies involved in fracking and tar sands - which are widely regarded as controversial methods of oil and gas extraction. Strategies vary.
Arctic drilling exclusion
Avoid companies that are involved in extracting oil from the Arctic regions.
Fossil fuel reserves exclusion
Avoid investing in companies / assets with coal, oil and gas reserves. See individual entry information for further details.
Nuclear exclusion policy
Has a policy which describes the avoidance or limited investment in the nuclear industry. Strategies vary.
Fossil fuel exploration exclusion - direct involvement
Excludes companies and other assets with direct involvement in fossil fuel exploration (eg coal, oil and gas companies) Ethical Values Led Exclusions
Tobacco & related product manufacturers excluded
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.
Tobacco & related products - avoid where revenue > 5%
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.
Controversial weapons exclusion
Excludes companies which make controversial weapons such as landmines, cluster munitions and chemical weapons.
Armaments manufacturers avoided
Avoids companies that manufacture weapons intended specifically for military use. Strategies vary - may or may not include non-strategic military products.
Military involvement exclusion
Avoids companies with military contracts. This may include medical supplies, food, safety equipment, housing, technology etc
Civilian firearms production exclusion
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.
Alcohol production excluded
Avoids companies that produce alcohol. Strategies vary; some may allow a small proportion of revenue to come from this area.
Gambling avoidance policy
Avoids companies with significant involvement in the gambling industry. Some may allow a small proportion of revenues to come from this area.
Pornography avoidance policy
Avoids companies that derive significant income from pornography and related areas. Strategies vary. Human Rights
Child labour exclusion
Has policies to avoid companies that employ children.
Modern slavery exclusion policy
Has a policy which excludes assets with involvement in Modern Slavery Gilts & Sovereigns
Gilts / government bonds - exclude some
Avoids investing in 'some' gilts or government bonds. Strategies vary, but this may relate to avoiding specific countries or particular reasons for bond issuance. 'Green gilts' for example would be likely to be acceptable.
Gilts / government bonds - exclude all
Does not invest in, or excludes, gilts and/or government bonds.
Does not invest in sovereigns
Does not invest in / excludes 'sovereigns' - debt issued by governments. See eg https://www.investopedia.com/terms/s/sovereign-debt.asp Banking & Financials
Invests in banks
Can include banks as part of their holdings / portfolio.
Invests in financial instruments issued by banks
Invests in financial instruments (cash, derivatives and / or foreign exchange) issued by banks. Strategies vary.
Invests in insurers
May invest in insurance companies. Governance & Management
Avoids companies with poor governance
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.
UN sanctions exclusion
Exclude companies that are subject to United Nations sanctions. See eg https://main.un.org/securitycouncil/en/content/un-sc-consolidated-list
Anti-bribery & corruption policy
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.
Encourage higher ESG standards through stewardship activity
Aim to encourage higher ESG standards through responsible ownership / stewardship / engagement /voting activity Product / Service Governance
ESG integration strategy
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. Asset Size
Over 50% large cap companies
Invests more than half of their money into what are commonly regarded as 'large companies'. This will typically mean that the market capitalisation (or value) of the companies they hold is in excess of £5 to £10 billion.
Invests in small, mid & large cap companies / assets
Invests in a combination of small, medium and larger (potentially multinational) companies / assets. How The Fund/Portfolio Works
Negative selection bias
Has principle 'ethical approach' to avoid companies by using negative screening criteria. Strategies vary.
Passive / index driven strategy
Only uses an investment index to direct where they can invest. Fund strategies and indices vary.
ESG risk mitigation focus
Focuses on the careful management of environmental, social and governance (ESG) related risks - typically by avoiding or being underweight in companies seen as posing major risks in these areas (i.e. not necessarily by using themes, exclusions etc).
SRI / ESG / Ethical policies explained on website
Publish explanations of their ethical, social and/or environmental policies online (i.e. investment decision making strategies/ buy/sell &/or asset management strategies).
Do not use stock / securities lending
Does not use stock lending for performance or risk purposes. Unscreened Assets & Cash
Assets typically aligned to sustainability objectives 70 - 79%
Holds between 70-79% of assets which align to the sustainability objectives; which are not being held purely for risk management purposes, such as derivatives and cash equivalent assets.
Assets typically aligned to sustainability objectives 80 – 89%
Holds between 80-89% of assets which align to the sustainability objectives; which are not being held purely for risk management purposes, such as derivatives and cash equivalent assets.
Assets typically aligned to sustainability objectives > 90%
Holds at least 90% of assets which align to the sustainability objectives; which are not being held purely for risk management purposes, such as derivatives and cash equivalent assets.
No ‘diversifiers’ used other than cash
Only invests in cash to aid the practical management (buying and selling) of assets and so do not use additional financial instruments.
All assets (except cash) meet published sustainability criteria
All assets - except cash - meet the sustainability criteria published in strategy documentation. Intended Clients & Product Options
Intended for clients interested in sustainability
Designed to meet the needs of individual investors with an interest in sustainability issues.
Available via an ISA (OEIC only)
Available via a tax efficient ISA product wrapper.
Portfolio SRI / ESG options available
Only applicable for DFM’s & portfolio providers. Finds those that offer an SRI / ESG portfolio option
Multiple SRI / ESG portfolio options available
Only applicable for DFM’s & portfolio providers. Find service providers who offer multiple SRI / ESG portfolio options Labels & Accreditations
SFDR Article 8 fund / product (EU)
Find options classified under Article 8 of the EU’s SFDR (Sustainable Finance Disclosure Requirements). Article 8 of the SFDR is a set of requirements that apply to financial products that 'promote' environmental or social characteristics together with high governance. These rules do not currently apply to UK products so many managers may leave this field blank. Fund Management Company InformationAbout The Business
Responsible ownership / stewardship policy or strategy (AFM companywide)
Finds fund / asset management companies that have a published company wide stewardship, engagement and / or responsible ownership policy or strategy that covers all investments. Stewardship typically involves encouraging higher ESG standards through voting and dialogue.
ESG / SRI engagement (AFM companywide)
Find fund / asset management companies that actively encourage higher 'environmental, social and governance' and / or 'sustainable and responsible investment' practices across investee companies - typically where the aim is to encourage positive change that is aligned with the best interests of investors. Strategies vary. See additional information and options.
Responsible ownership policy for non SRI / sustainable options (AFM companywide)
Find options run by managers that apply Responsible ownership or 'Stewardship' policies to all or most of their investment assets. This means active involvement (e.g. voting, dialogue) with the companies across all or most funds, products and services.
Integrates ESG factors into all / most research (AFM companywide)
Find fund / asset management companies that consider environmental, social and governance (ESG) issues when deciding whether or not to invest in a company for all / almost all of their funds and other assets. This is increasingly seen as part of sound risk management.
In-house diversity improvement programme (AFM companywide)
Finds organisations / fund managers that have an in-house (company wide) diversity improvement programme - meaning that they are working to ensure that within their own businesses they employ people from diverse backgrounds - often typically focused on ethnicity and/or sex.
Diversity, equality & inclusion engagement policy (AFM companywide)
Find fund / asset management companies that encourage the companies they invest in to have strong diversity, race, gender and other equality policies across all assets held, not simply screened or themed SRI/ESG funds. (ie Asset Management company wide). Collaborations & Affiliations
PRI signatory
Find fund / asset management companies that have signed up to the UN backed 'Principles of Responsible Investment'.
Investment Association (IA) member
Fund management entity is a member of the Investment Association https://www.theia.org/ Resources
In-house responsible ownership / voting expertise
Find fund / asset management companies that employ people to steer and support fund managers in voting shares at company AGM's and EGMs in ways that are consistent with encouraging higher ESG/sustainability standards.
Employ specialist ESG / SRI / sustainability researchers
Find a fund / asset management company that directly employs specialist ESG/SRI/sustainability researchers or analysts. This allows asset managers to discuss environmental, social and governance risks and opportunities directly with companies.
Use specialist ESG / SRI / sustainability research companies
Find fund / asset management companies that makes use of expert external research companies. This can help deliver specialist expertise and means resources are pooled with other investors. Accreditations
UK Stewardship Code signatory (AFM companywide)
Find fund / asset managers that are signatories to the FRC UK Stewardship Code, which sets out a framework for constructive investor / investee relations where managers are encouraged to behave like responsible, typically longer term 'company owners'. Climate & Net Zero Transition
Encourage carbon / greenhouse gas reduction (AFM companywide)
Find fund / asset management companies that are working with the companies they invest in to encourage reductions in carbon dioxide and other greenhouse gas emissions.
Carbon transition plan published (AFM companywide)
Finds organisations / fund managers that have a company wide carbon transition plan - meaning that they have plotted a path to how they will move away from activities that produce or use carbon based energy sources (that emit greenhouse gases) towards clean, alternative, renewable energy sources.
Carbon offsetting - offset carbon as part of net zero plan (AFM companywide)
This fund / asset management company plans to achieve net zero greenhouse gas (CO2e) emissions with the help of a scheme that will lock away an amount of carbon that is equivalent to the company’s own emissions – so that the end result is ‘net zero’. Calculations and scope vary.
In-house carbon / GHG reduction policy (AFM companywide)
Find fund / asset management companies that are working to reduce their own (fund management company) carbon/greenhouse gas emissions. Transparency
Publish responsible ownership / stewardship report (AFM companywide)
Find fund / asset management companies that publish a report detailing their responsible investment ownership - also known as 'Stewardship' - activity.
Full stewardship / responsible ownership policy information on company website
Find fund / asset management companies that publish information about their sustainable and responsible investment strategies on their company website.
Publish full voting record (AFM companywide)
Fund / asset management companies that publish a full record of how they vote their shares at AGMs (annual general meetings) and EGMs (extraordinary general meetings). Voting strategies have an important role to play encouraging higher environmental, social and governance standards. Sustainable, Responsible &/or ESG Policy:All of Vanguard’s equity ESG index funds and ETFs track the FTSE Global Choice Index Series. The FTSE Global Choice Index Series is a market capitalisation weighted index series with a rules-based methodology for excluding certain issuers based on their product involvement or conduct. The result is a framework for applying robust and customisable values-based exclusions to a broad market index. The index applies screens to exclude companies engaged or involved in the following activities: adult entertainment, alcohol, gambling, tobacco, cannabis, power generation from oil, gas, thermal coal and nuclear energy fossil fuels (oil, gas, thermal coal, arctic oil and gas, and oil sands), controversial weapons (chemical & biological weapons, cluster munitions, anti-personnel landmines), civilian firearms, nuclear weapons, and conventional military weapons. The index also excludes companies that, as determined by FTSE, are involved in severe controversies related to the United Nations Global Compact Principles, which cover labour, human rights, the environment and anti-corruption. The methodology has three levels of restrictiveness for exclusions, and companies are screened for both primary (e.g., producer/ manufacturer) and secondary (e.g., retailer/ supplier) involvement using revenue thresholds. The exception being cannabis which is only screened for primary involvement. Least restrictive: Adult Entertainment, Alcohol and Gambling have a 5% revenue tolerance for companies with primary involvement, and a 10% tolerance for companies with secondary involvement. Moderately restrictive: Tobacco, Cannabis and Conventional (military) Weapons have a 0% revenue tolerance for companies with primary involvement and a 5% tolerance for companies with secondary involvement. Conventional and unconventional Oil and Gas (including oil sands, arctic oil and gas extraction) have a 5% revenue tolerance across both primary and secondary involvement categories. Most restrictive: Controversial Weapons, Civilian Firearms, Nuclear Weapons, Power Generation (from oil, gas, thermal coal and nuclear energy), Thermal Coal, Oil and Gas Reserves, Thermal Coal Extraction and Supporting Products and Services have a 0% revenue tolerance for companies with either primary or secondary involvement (with the exception of some Fossil Fuel-related activities whose exclusions are based on Industry Classification Benchmark (ICB) subsector classifications). Below is a table summarising the exclusion principles and their respective revenue thresholds:
Resources, Affiliations & Corporate Strategies:Vanguard does not have one centralised team responsible for ESG investment . Instead, we have various teams and groups addressing the different aspects of ESG. Please see details below on some of the teams that are responsible for various ESG considerations at Vanguard.
ESG Team, Portfolio Review Department The regional PRD ESG teams act as centers of excellence that deploy ESG subject matter expertise and partner across the Portfolio Review Department (PRD) to drive the success of clients and the business in each region. Each region’s ESG team and SMEs are responsible for broader ESG investing topics, such as supporting ESG regulatory implementation, ESG product oversight and ecosystem enhancements, and enterprise-wide ESG strategic initiatives. The regional teams and SMEs stay connected on global initiatives such as ESG data and reporting, industry trends, and ESG product roadmaps. The teams closely collaborate with partners across PRD, including colleagues in Manager Search and Oversight and other product category teams. Many members of these teams commit a significant portion of time to ESG efforts as well, such as assessing the ESG competitive product landscape to inform new ESG product design and evaluating active managers on their ESG integration approaches. In addition to ESG-dedicated roles, Vanguard continues to embed ESG considerations into existing functions to ensure ESG factors are considered alongside, not separately from, other matters important to improving the investment outcomes of our clients.
For example: Vanguard Fixed Income Group (FIG) assesses the financial materiality of ESG risks to complement standard credit assessment. FIG’s credit research analysts also regularly meet with issuers to discuss key credit risk topics and, where applicable, raise ESG concerns. Vanguard Investment Management & Finance Risk (IMFR) provides independent oversight and monitoring of investment risk management of sustainability risk. Vanguard’s Investment Strategy Group conducts research on both non-ESG and ESG topics which is then shared internally for education and to inform decision-making. This research may also be published. A list of the external organisation initiatives Vanguard currently participates in that relate to investment stewardship can be found below: (as at December 2025).
Stewardship Codes The UK Stewardship Code (Signatory since 2021) Dialshifter (Corporate)Our organisation is helping to support the Paris Climate Agreement and the Race to Net Zero by… Please refer to our website: SDR Labelling:Not eligible to use label (out of scope) Fund HoldingsDisclaimerImportant Information Confidentiality The information contained in this document, including attachments, is confidential information and property of Vanguard Asset Management, Limited, The Vanguard Group, Inc. and their affiliates. The information may not be divulged or communicated to any third parties without the prior written consent of Vanguard Asset Management, Limited, unless it is needed for the execution of the present document or when divulgation is required by law. Investment Risk Information The value of investments, and the income from them, may fall or rise and investors may get back less than they invested. Some funds invest in emerging markets which can be more volatile than more established markets. As a result the value of your investment may rise or fall. Investments in smaller companies may be more volatile than investments in well-established blue chip companies. Reference in this document to specific securities should not be construed as a recommendation to buy or sell these securities, but is included for the purposes of illustration only. ETF shares can be bought or sold only through a broker. Investing in ETFs entails stockbroker commission and a bid-offer spread which should be considered fully before investing. Funds investing in fixed interest securities carry the risk of default on repayment and erosion of the capital value of your investment and the level of income may fluctuate. Movements in interest rates are likely to affect the capital value of fixed interest securities. Corporate bonds may provide higher yields but as such may carry greater credit risk increasing the risk of default on repayment and erosion of the capital value of your investment. The level of income may fluctuate and movements in interest rates are likely to affect the capital value of bonds. The funds may use derivatives in order to reduce risk or cost and/or generate extra income or growth. The use of derivatives could increase or reduce exposure to underlying assets and result in greater fluctuations of the funds’ net asset value. A derivative is a financial contract whose value is based on the value of a financial asset (such as a share, bond, or currency) or a market index. Some funds invest in securities which are denominated in different currencies. Movements in currency exchange rates can affect the return of investments. Income may fluctuate in accordance with market conditions and taxation arrangements. For further information on risks please see the “Risk Factors” section of the prospectus on our website at https://global.vanguard.com.
Disclaimer This document is directed at professional investors and should not be distributed to, or relied upon by retail investors. For further information on the funds’ investment policies and risks, please refer to the prospectus of the UCITS and to the KIID before making any final investment decisions. The KIID for this fund is available, alongside the prospectus via Vanguard’s website https://global.vanguard.com. This document is designed for use by, and is directed only at, persons resident in the UK. The information contained in this document is not to be regarded as an offer to buy or sell or the solicitation of any offer to buy or sell securities in any jurisdiction where such an offer or solicitation is against the law, or to anyone to whom it is unlawful to make such an offer or solicitation, or if the person making the offer or solicitation is not qualified to do so. The information in this document is general in nature and does not constitute legal, tax or investment advice. Potential investors are urged to consult their professional advisers on the implications of making an investment in, holding or disposing of units/shares of, and the receipt of distribution from any investment. Vanguard Asset Management, Limited makes no representations or warranties as to the suitability or appropriateness of third party organisations and service providers and the services they may provide, neither is it a recommendation or advice to use them. Vanguard Asset Management, Limited is not responsible for the content of any third party websites accessed from this communication. Vanguard Investment Series plc/Vanguard Funds plc have been authorised by the Central Bank of Ireland as a UCITS and have been registered for public distribution in certain EEA countries and the UK. Prospective investors are referred to the funds' prospectus for further information. Prospective investors are also urged to consult their own professional advisers on the implications of making an investment in, and holding or disposing shares of the funds and the receipt of distributions with respect to such shares under the law of the countries in which they are liable to taxation. The Manager of Vanguard Investment Series plc is Vanguard Group (Ireland) Limited. Vanguard Asset Management, Limited is a distributor of Vanguard Investment Series plc. The Manager of Vanguard Funds plc is Vanguard Group (Ireland) Limited. Vanguard Asset Management, Limited is a distributor for Vanguard Funds plc. The Indicative Net Asset Value (“iNAV”) for Vanguard’s ETFs is published on Bloomberg or Reuters. Refer to the Portfolio Holdings Policy at https://fund-docs.vanguard.com/portfolio-holdings-disclosure-policy.pdf. The Manager of the Ireland-domiciled funds may determine to terminate any arrangements made for marketing the shares in one or more jurisdictions in accordance with the UCITS Directive, as may be amended from time-to-time. For investors in Ireland-domiciled funds, a summary of investor rights can be obtained via https://www.ie.vanguard/content/dam/intl/europe/documents/en/vanguard-investors-rights-summary-irish-funds-jan22.pdf and is available in English, German, French, Spanish, Dutch and Italian. Issued by Vanguard Asset Management, Limited which is authorised and regulated in the UK by the Financial Conduct Authority. © 2026 Vanguard Asset Management, Limited. All rights reserved. |
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