State Street switches European ETF to SRI

State Street Global Advisors has said it will change its Europe equity ESG ETF to include SRI criteria.

The SPDR STOXX Europe 600 ESG Screened ETF (ZPDX) will become the SPDR STOXX Europe 600 SRI ETF moving from tracking the STOXX Europe 600 ESG-X index to the STOXX Europe 600 SRI index.

The ESG benchmark excludes companies rated by Sustainalytics involved in controversial weapons, tobacco production and those deriving revenues or power generation from thermal coal extraction or exploration. The SRI index also excludes companies involved in alcohol, adult entertainment, all weapons, gambling, oil and gas, and nuclear power. Companies ranked in the top 10% in terms of emission intensities are also not included.

The ETF will remain classified as Article 8 under the Sustainable Finance Disclosure Regulation (SFDR).