GMO relies on data feeds from third-party service providers to determine whether a company is in a particular sector. In particular, GMO will look to revenue percentages generated by certain business activities or business activity screens provided in these data feeds. Generally, the revenue percentages are derived from figures reported by issuers or, if not reported, estimated figures based on information available that is sufficient and reliable.
Regarding the specific sectors listed in the prospectus, GMO considers the following business activities to be relevant for the foregoing analysis:
Item |
Description |
Exposure Threshold |
|
Norges Bank List |
Norges Bank determination to exclude companies from the fund’s investment universe, or to place companies on an observation list. https://www.nbim.no/en/the-fund/responsible-investment/exclusion-of-companies/ |
Exclusion companies |
|
Tar Sands |
Revenue generated by tar sand extraction as a percentage of the company’s total revenue, based upon data provided by third-party service providers |
10% |
|
Thermal Coal |
Revenue generated by thermal coal mining activities as a percentage of the company's total revenue, based upon data provided by third-party service providers |
10% |
|
Controversial Weapons |
Companies that manufacturer Cluster Munitions, are owned by Cluster Munitions Manufactures, or manufacture Land Mines, Biological Weapons Systems or Components, or Depleted Uranium Weapons, based upon data provided by third-party service providers |
All |
|
Fossil Fuels |
Companies that have proven & probable coal reserves and/or oil and natural gas reserves used for energy purposes based upon the index provider’s research, based upon data provided by third-party services providers |
All |
|
Tobacco |
Revenue generated from the production or supply of tobacco related products as a percentage of the company’s total revenue, based upon data provided by third-party service providers |
5% |