Kanish Chugh

Index developer and research company ROBO Global has strengthened the ESG framework for its indices, including the Robotics & Automation Index underlying ETF Securities’ ETFS ROBO Global Robotics and Automation ETF (ASX Code: ROBO).

The ROBO ETF offers investors exposure to the investment themes of robotics, automation and artificial intelligence.

ETF Securities Head of Distribution Kanish Chugh says: “ESG standards are evolving and our index provider ROBO Global has a strong commitment to review the latest research and adapt to changing standards. We support this approach by our index partner.”

ROBO Global has provided greater clarity about its exclusions and thresholds, making clear that it will exclude companies from its indices if it believes they do significant harm to environmental, social and governance objectives.

For example, companies are excluded if there is an unacceptable risk that the company may contribute to or be responsible for serious human rights violations, severe environmental damage or other particularly serious violations of fundamental ethical norms.

Other exclusions cover weapons, alcohol, gambling and pornography, fossil fuels and animal testing.

ROBO Global has been a signatory to the United Nations-supported Principles for responsible Investing since 2017 and has incorporated these principles into its ESG framework.

In addition, it conforms to ESG disclosure requirements set out by the European Union’s Commission on Delegated Regulation.

In an updated statement outlining its Environmental, Social and Governance Policy, the firm says: “We abide by evolving global industry standards related to ESG.

“ROBO Global engages directly with the management teams of our index members as we research and score companies across various criteria. We view good governance as a tool to improve the performance of their business, help them become more stable and productive, and unlock new opportunities.” Says Richard Lightbound, CEO for EMEA & Asia at ROBO Global.

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