S&P Dow Jones has announced a new addition to its global ESG index using enhanced ESG scores and granular data.
Drawing from two decades of ESG innovation this new set of indices provides performance profiles in line with several S&P indices including Global 12000, Europe 250 and ASX200.
The new global ESG indices uses enhanced ESG scores and include ESG version of S&P’s country and regional benchmarks across Americas, Europe, APAC and EMEA.
Chief executive officer at S&P Dow Jones Indices Alex Matturri said he was excited to launch these indices following the debut of the 500 ESG index and ESG scores in April.
“Across the company, we are developing a portfolio of products that provide an ESG lens on investments, adding layers of insights for clients.
“These new indices provide market participants an investment tool that is aligned with their values and has a return profile that’s consistent with mainstream benchmarks that have been widely followed for years,” he said.
The global ESG indices will follow eligibility criteria based on a companies’ ESG scores, business activities and the UN Global Compact (UNGC).
It will exclude tobacco companies and will also exclude companies involved in controversial weapons either directly or via an ownership stake of 25 per cent.
Companies not aligned with the UNGC or that have poor scores will also not be included with an end result being an ESG index whose risk and return profile is closely in line with that or its regional or country parent.
S&P DJI’s global head of ESG Indices Reid Steadman said he was proud of the research and rigour that was applied to the design of the ESG indices.
“While ESG has long been of great interest to investors, market participants are becoming increasingly sophisticated in integrating ESG factors into their investments.
“Through our collaboration with SAM, we’ve developed an enhanced ESG scoring methodology that is purposely built for integration in our indices,” he said.
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