Irish-Domiciled Dimensional Sustainability Funds to Be Renamed “Lower Carbon ESG Screened”
To meet regulatory requirements for naming environmental, social and/or governance (ESG) funds in Europe, Dimensional intends to replace the word “Sustainability” with “Lower Carbon ESG Screened” in Irish-domiciled funds on March 14, 2025. The location of the terms in the name will also change, as indicated below.
We chose the new terms to reflect the carbon- and ESG-related goals of the funds. Their investment objectives and risks will remain unchanged. Within their respective asset classes, the funds seek to emphasise securities with higher expected returns and lower carbon intensity. They also generally exclude companies with the highest greenhouse gas emissions or fossil fuel reserves and those associated with selected ESG issues.
In conjunction with the name change, the list of the funds’ ESG-related exclusions will be expanded to reflect the exclusions applied in the EU’s Paris-Aligned Benchmarks (PAB), such as additional fossil fuel-related activities. Furthermore, the two fixed income funds will also consider greenhouse gas emissions for sovereigns and local authority issuers. These changes are not expected to have a material impact on the holdings of any fund at implementation.
As before, these funds will continue to be subject to Article 8 of the EU’s Sustainable Finance Disclosure Regulation (SFDR). Since the funds are domiciled in Ireland, they are not currently in the scope of the UK’s Sustainability Disclosure Requirements (SDR).
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The Emerging Markets Core Equity Lower Carbon ESG Screened Fund, Global Core Equity Lower Carbon ESG Screened Fund, Global Core Fixed Income Lower Carbon ESG Screened Fund, Global Short Fixed Income Lower Carbon ESG Screened Fund, Global High Profitability Lower Carbon ESG Screened Fund, Global Targeted Value Lower Carbon ESG Screened Fund and World Equity Lower Carbon ESG Screened Fund (the "ESG Funds") promote sustainability in accordance with Article 8 of Regulation (EU 2019/2088) on sustainability related disclosures in the financial services sector (SFDR). The ESG Funds do not have sustainability investment as their objective but as part of the ESG Funds’ investment policy, the Investment Manager does take into account the sustainability impact associated with securities when making investment decisions for the ESG Funds. While the ESG Funds promote sustainability and the Investment Manager takes into account sustainability impact considerations, the ESG Funds’ investments are not evaluated against the EU criteria for environmentally sustainable economic activities and, therefore, the “do no significant harm” principle does not apply to the ESG Funds’ investments. Consider the investment objectives of the Dimensional funds carefully before investing. For this and other information about the Dimensional funds, please read the prospectus, KID and KIID carefully before investing. Information on sustainability related disclosures in the financial services sector (SFDR) pursuant to Regulation (EU) 2019/2088 in relation to the promoted fund is available at www.dimensional.com/SFDR.
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