Invesco MSCI Global Climate 500 ETF(AMEX:KLMT)

KLMT is passively managed to hold 500 stocks from a broad global equity universe, meeting specific environmental and climate criteria. The index excludes companies involved in controversial business activities or those implicated in business controversies with potential negative ESG impacts. It employs a methodology consistent with international norms, evaluating each company's reputational and brand risks across five ESG categories: environment, human rights & community impact, labor rights & supply chain, customers, and governance. Eligible stocks are selected and weighted using an optimization process focused on emission intensity and reduction targets. This process aims to (i) reduce weighted average GHG emissions intensity related to revenue by 10%, (ii) reduce weighted average GHG emissions intensity related to financing activities by 7%, and (iii) increase weight in companies with one or more SBTi-approved GHG emissions reduction targets. Country and sector weights are capped to align closely with the parent index.