BlackRock is set to launch an environmental, social and governance (ESG) screened suite of six ETFs, Investment Week understands.
The suite will offer investors access to six different MSCI indices: World, Japan, Emerging Markets, European Economic and Monetary Union (EMU), US and Europe.
The range will screen-out seven sectors including controversial weapons, nuclear weapons, thermal coal, civilian firearms, tobacco and oil sands while excluding all companies violating the UN Global Compact principles.
For example, on the iShares MSCI Europe ESG Screened UCITS ETF EUR, the top five screenings from the parent index are Novartis and Shell, who both fail the UN Global Compact principles, British American Tobacco, Airbus because of its involvement in nuclear weapon delivery platforms and Rio Tinto, which receives more than 5% of its revenue from thermal coal.
The ETFs will have total expense ratios (TERs) ranging between 0.07% and 0.20%.
Last month, BlackRock expanded its ESG range with the launch of an emerging market debt ETF.
On 26 September, an environmental campaign named BlackRock's Big Problem criticised the firm for allegedly being the "largest owner of fossil fuel companies and single largest contributor to climate destruction".
Latest news and analysis
New green finance standards also unveiled
Previously head of ETF & indexing sales
Letter to Women and Equalities Committee