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ERI Scientific Beta makes carbon reporting available free of charge for all indices

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ERI Scientific Beta has added Carbon Footprint and Carbon Intensity to all indices built on the Developed and Extended Developed Europe universes and both are now available to platform users free of charge.

Noël Amenc (pictured), CEO of ERI Scientific Beta, says: "This initiative is part of our contribution towards the fight against the effects of human activities on climate change. When we signed the United Nations-supported Principles for Responsible Investment (PRI) on 27 September, 2016, we clearly expressed our desire to be one of the leaders in introducing environmental constraints into the investment industry.
 
“In December 2015, on the occasion of the Paris climate conference, we announced the launch of indices reconciling an objective of strongly reducing the carbon exposure of the investment while generating superior risk-adjusted return through a multi-factor approach. Today, we have almost USD3 million in assets committed to this type of approach. By allowing all investors to assess the carbon intensity and carbon footprint of their smart beta investment, we hope that they will easily be able to integrate environmental constraints into their investment policy."
 
The analytics platform has also been enhanced to allow investors to avail of new functionality to analyse the Scientific Beta indices.
 
The "Risk Factor Exposure" analytic, which shows the risk factor exposure to the cap-weighted market risk factor and the equal-weighted variants of the six common factors (size, value, momentum, volatility, investment and profitability), now also reports the "Factor Intensity", which is a measure of aggregate factor exposure to the rewarded risk factors.
 
The "Fundamentals" attributes now additionally report "Gross Profitability", defined as the weighted average of the Gross Profitability of the constituents, and "Total Asset Growth" metrics, defined as the weighted average of the Total Asset Growth of the constituents.
 
Finally, a new analytic, the "Score Factor Exposure", allows investors to avail of analytics dedicated to the factor score, consistent with the scoring used in the various construction phases of the Scientific Beta indices. The analytic displays the six relative factor scores and relative score intensity for the strategy index, its beta cap-weighted reference (where applicable) and its broad cap-weighted reference.

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