Global X to Add ESG Screener to Food Fund in Europe

Global X is set to add an ESG screen to its agricultural technology and food innovation ETF following changes by index provider Solactive.

Effective Thursday, the group said the changes mean Global X AgTech & Food Innovation UCITS ETF (KROP) will become a more “ESG-friendly product to all users”.

Launched in February 2022, KROP tracks the Solactive AgTech and Food Innovation v2 index.

The index will see an environmental, social and governance screen added by data provider Minerva and will exclude companies not aligned with the United Nation’s Global Compact Principles.

Other Exclusions

In addition, companies involved in the development or maintenance of controversial weapons such as mines, chemical weapons and cluster munitions will also be screened out of the index.

Companies that make over 10% of revenue from thermal coal or over 5% from oil and gas will also be excluded.

Other sector exclusions include palm oil, prisons, adult entertainment, cannabis and tobacco, alcohol and gambling.

KROP is yet to see significant demand from investors after amassing just $1.5 million in assets under management since its launch.

In July, the ETF issuer launched the Global X S&P 500 Covered Call UCITS ETF (XYLU), the second in the range after it unveiled the Global X Nasdaq 100 Covered Call UCITS ETF (QYKD) in November last year.