The fund selects securities from S&P/TSX Composites index of Canadian firms that meet ESG screens while maintaining similar industry allocations as the index. Eligible companies are identified using various exclusionary screens which include controversial business activities involvement, as defined by Sustainalytics, Arabesque GC scores based on United Nations Global Compact (UNGC) principles, Media and Stakeholder Analysis (MSA), and S&P DJI ESG Scores. The fund specifically eliminates companies that have: (1) tobacco, weapons, and thermal coal-related businesses (2) GC scores ranked in the bottom 5% of all UNGC-scored companies globally (3) ESG risks flagged by released MSA and (4) those with S&P DJI ESG scores within the bottom 25% from each GICS industry group. Remaining companies are then ranked in decreasing order of S&P DJI ESG scores, selecting securities until 75% of each industry groups market cap is reached. Constituents are weighted by market cap and rebalanced annually.
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