SUSTAINABILITY ESG at Vaneck
Investing Today for a Brighter Future.
ESG investing is an approach to investing that drives positive environmental, social and governance (ESG) outcomes alongside financial results, aligning investment opportunities with investors’ values.Our Responsible Investment Policy
What is ESG Investing?
ESG investing incorporates environmental, social and governance factors and ethical considerations when making investment decisions.
Environmental criteria include energy use and impact on climate change, greenhouse gas emissions, waste, pollution, natural resource conservation and animal treatment.
Social criteria consider a company’s relationships with its stakeholders and includes working conditions, impact on local communities, health and safety and employee relations and diversity.
Governance includes the proper use of accurate and transparent accounting methods, fair voting, avoiding conflicts of interest and not engaging in illegal behavior.
VanEck considers ESG factors integral to its investment philosophy and processes. We believe that an improving ESG record should translate into a company’s differentiated operational strength, financial performance and prospects and have an impact on valuation. In our view, companies exhibiting strong ESG practices are more likely to be both more competitive and successful over the medium to long term.
As intentions, thinking and evidence in the ESG space continue to develop, we remain committed to identifying those factors that can provide enhanced investment opportunities for shareholders.
Our Commitment to Responsible Investment
VanEck is a signatory to the Principles for Responsible Investment (PRI), an investor initiative in partnership with UNEP Finance Initiative and UN Global Compact. Being a signatory means that we formally agree to incorporate ESG factors and analysis into our investment processes.
Governance—“active engagement” in particular—has always been a major consideration in our research processes and our efforts to fine-tune the ESG questions to ask in each industry are ongoing. We believe that an important part of our responsibility to clients goes beyond encouraging change that can enhance, protect and provide opportunities for shareholders to meet their investment objectives. It also entails seeking to mitigate associated risks, including those related to ESG.
Governance is especially important for our active emerging markets equity strategy. Companies can have higher concentrations of inside ownership and more flexible rules. With our active gold mining strategy, we rigorously monitor companies’ adherence to industry best practices and have much more meaningful interactions with company boards on ESG topics compared to 10 years ago.
We were one of the first ETF issuers to offer environmentally sustainable exposures and we continue to research how those strategies can add value to client portfolios. VanEck offers ETFs, both equity and fixed income, either with ESG- and sustainability-related themes, or approaches that employ specific screening criteria and/or indices.
Important Definitions & Disclosures
An investment in the VanEck Vectors® Green Bond ETF (GRNB®) may be subject to risks which include, among others, green bonds, investing in European and emerging market issuers, foreign securities, foreign currency, credit, interest rate, high yield securities, supranational bond, government-related bond, restricted securities, securitized/asset-backed securities, financial, utilities, market, operational, call, sampling, index tracking, authorized participant concentration, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount risk and liquidity of fund shares, non-diversified and concentration risks, all of which may adversely affect the Fund.
An investment in the VanEck Vectors® Low Carbon Energy ETF (SMOG®) may be subject to risks which include, among others, investing in low carbon energy companies, investing in European issuers, foreign securities, foreign currency, depository receipts, industrials sector, information technology sector, small- and medium-capitalization companies, equity securities, market, operational, index tracking, authorized participant concentration, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount risk and liquidity of fund shares, non-diversified and concentration risks, all of which may adversely affect the Fund. Foreign investments are subject to risks, which include changes in economic and political conditions, foreign currency fluctuations, changes in foreign regulations, and changes in currency exchange rates which may negatively impact the Fund's return. Small- and medium-capitalization companies may be subject to elevated risks.
ESG investing is qualitative and subjective by nature, and there is no guarantee that the factors utilized by VanEck or any judgment exercised by VanEck will reflect the opinions of any particular investor. Information regarding responsible practices is obtained through voluntary or third-party reporting, which may not be accurate or complete, and VanEck is dependent on such information to evaluate a company’s commitment to, or implementation of, responsible practices. Socially responsible norms differ by region. There is no assurance that the socially responsible investing strategy and techniques employed will be successful.
ESG integration is the practice of incorporating material environmental, social and governance (ESG) information or insights alongside traditional measures into the investment decision process to improve long term financial outcomes of portfolios. Unless otherwise stated within the Fund’s investment objective, inclusion of this statement does not imply that the Fund has an ESG-aligned investment objective, but rather describes how ESG information is integrated into the overall investment process.
Investing involves substantial risk and high volatility, including possible loss of principal. Bonds and bond funds will decrease in value as interest rates rise. An investor should consider the investment objective, risks, charges and expenses of a fund carefully before investing. To obtain a prospectus and summary prospectus, which contain this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectus carefully before investing.