ESG

Responsible Investing

Sustainability and responsibility are embedded throughout our business, which we believe benefits our investors, employees and shareholders.

We believe there is a need for diversification and full transparency in how investors allocate their money. ESG (environmental, social and governance) investing is a big part of WisdomTree’s global approach.

Walk the Walk

 

We’re proud to have built a diverse and inclusive workforce across gender, race, age, and ability, including in our leadership teams and boards.

  • Our employee-led Women's Initiative Network (WIN) events also showcase our commitment to equity in the workforce and are designed to empower women in our organization.
  • Our ESG Steering Committee keeps us accountable in our efforts to embed sustainability mandates at a corporate level.
  • In 2019, we achieved UN Principles for Responsible Investment (UNPRI) signatory status.

Read Our Corporate Social Responsibility Report

DPD View
DPD View

Our ESG Approach

 

WisdomTree’s proprietary ESG methodology seeks to select those companies with both attractive ESG characteristics AND the potential to outperform.

 

Read the WisdomTree ESG Research

Additional Resources for Financial Advisors

E. S. G. These three letters are making a big impact today—and will be having an even more significant impact in the coming years. And your clients should learn about them from you. WisdomTree recently conducted investor and advisor research to better understand where environmental, social and governance investing stands and the best way for you to talk about it with your clients.

Our ESG Offering

 

Our ex-state-owned methodology, introduced in 2014, underlines our conviction that government-owned companies, particularly in emerging markets, can often have a negative impact on long-term performance. We offer three distinct ex-state-owned approaches in broad emerging markets (XSOE), China (CXSE) and India (IXSE).

Additionally, we offer a family of broad-based U.S. (RESP), international (RESD) and emerging market (RESE) equity strategies that combine the potential performance benefits of our multifactor methodology while reflecting ESG values to meet investors' evolving needs.

 

Ex-State-Owned

 

Seeks to provide access to performing markets without the government ownership that can affect governance and performance.

 

 
 
 

 

Multifactor

 

This family seeks to identify and capitalize on those companies with a combination of ESG characteristics and performance factors.

 

 
 
 

The Morningstar Sustainability Rating is a measure of the financially material environmental, social and governance, or ESG, risks in a portfolio relative to a portfolio's peer group. The Morningstar Sustainability Rating is calculated through a three-step process. First, Morningstar calculates the Morningstar Portfolio Sustainability Score for every portfolio reported within the trailing 12 months. This score is a historical holdings-based calculation using the company-level ESG Risk Rating from Sustainalytics, a leading provider of ESG research. The Sustainalytics’ company-level ESG Risk Rating measures the degree to which a company’s economic value may be at risk driven by ESG issues. To be considered material to the risk rating, an ESG issue must have a potentially substantial impact on the economic value of a company and therefore on the risk-return profile of an investment in the company. The ESG issues that are material vary across industry groups and companies. Second, Morningstar uses these scores to calculate a portfolio's Morningstar Historical Portfolio Sustainability Score. Third, Morningstar assigns a Morningstar Sustainability Rating for a portfolio based on its Morningstar Historical Portfolio Sustainability Score relative to its Morningstar Global Category. Additionally, Morningstar applies ratings buffers to increase the rating's stability and makes ratings adjustments for portfolios with extreme Morningstar Historical Portfolio Sustainability Scores. For each product category, 5 globes are assigned to the top 10%, 4 globes to the next 22.5%, 3 globes to the next 35%,2 globes to the next 22.5%, and 1 globe to the bottom 10%.

Commentaries from Our Thought Leaders

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