Vanguard has clarified its definition of its ESG funds that said they excluided stocks in the fossil fuels industries. Their ESG US Stock ETF (ESGV) and ESG International Stock ETF (VSGX) “exclude” stocks in the fossil fuels and other industries, but after investors expressed surprise that some oil and gas companies remained in their funds, Vanguard has refined its ESG definition. Originally, their definition read as folllows:

“Specifically, the Index excludes stocks of companies in the following industries: adult entertainment, alcohol and tobacco, weapons, fossil fuels, gambling, and nuclear power. The index methodology also excludes the stocks of companies that do not meet the labor, human rights, environmental, and anti-corruption standards as defined by the United Nations Global Compact Principles , as well as companies that do not meet certain diversity criteria.”

This definition has no be changed to:

“The FTSE US All Cap Choice Index excludes stocks of companies that FTSE Group determines engage in the following activities: (i) companies that produce adult entertainment; (ii) companies that produce alcoholic beverages; (iii) companies that produce tobacco products; (iv) companies that (a) produce or (b) produce specific and critical parts or services for, nuclear weapon systems, chemical or biological weapons, cluster munitions, and anti-personnel mines; (v) companies that produce other weapons for military use; (vi) companies that produce firearms or ammunition for non-military use; (vii) companies that own proved or probable reserves in coal, oil, or gas; (viii) companies that provide gambling services; and (ix) companies that generate revenues from nuclear power production or related activities (including equipment, construction, and uranium). The index methodology also excludes the stocks of companies that, as FTSE Group determines, do not meet the labor, human rights, environmental, and anti-corruption standards as defined by the United Nations Global Compact Principles, as well as companies that do not meet certain diversity criteria.”