In our penultimate article looking at ESG in ETFs, we visit the Developed Government Bonds sector to find the funds with the highest ESG ratings based on TrackInsight analysis.
We do this with the help of TrackInsight's ESG tool, which it revealed in April, designed to give investors the capacity to assess the composition of a product under a socially responsible scope.
The tool, powered by Conser, analyses ETF holdings via a "consensus-driven" technology, which gives insight into the ESG consensus on each individual holding, as well as "major controversies and breaches of international norms". To gain this score, the tool assesses multiple ESG sources, such as implicit evaluations of ratings agencies and sustainable asset managers.
Like the global equities sector, Developed Government Bonds also boasts a wide range of funds, and as a result all of the top ESG-rated funds gained the highest accolade of A+.
In fact, none of the funds in the table below have any exposure to fossil fuels or any other ‘sin' industries, such as alcohol, tobacco or gambling, according to Concer analysis.
The iShares Global AAA-AA Govt Bond UCITS ETF Accumulating ETF even has some exposure to green bonds, at 0.44% of the portfolio.
In our weekly series, we reveal the top ESG-rated ETFs in different sectors based on data from TrackInsight and Conser. Next week will see our last article on the series.
Further information and a detailed breakdown of the ESG characteristics of more than 3,000 ETFs can be found on the TrackInsight website.