Solactive has launched the Solactive ISS ESG Prime Index Series, a range of indices tracking various regional segments of the global stock market including only companies fulfilling ambitious absolute ESG performance requirements.
These companies, categorised as “Prime” by ISS ESG, the responsible investment arm of Institutional Shareholder Services (ISS), achieve or exceed the sector-specific performance requirements defined by ISS based on the ESG risk exposure and impact of their respective business model and value chain (absolute best- in-class approach).
In addition, only companies operating in accordance with market standards on ESG controversy screens are eligible for inclusion. Those standards are based on established norms such as the United Nations Global Compact and the exclusion of significant involvement in defined sectors.
Including benchmarks for global, emerging and developed markets, as well as the USA and Europe, the Solactive ISS ESG Prime Index Series covers five important regions initially. Based on the Solactive Global Benchmark Series (GBS) and a consistent methodology framework, customised extensions to the series focusing on specific countries, regions, or sectors may be added efficiently upon request.
Timo Pfeiffer, Head of Research at Solactive, says: “After launching our first set of broad, exclusion- based ESG-benchmarks in February, we are now pleased to extend our range and offer clients yet another alternative in that space, this time focusing on the ‘best of the best’ in terms of overall ESG performance by combining exclusions with a rigorous, absolute best-in-class approach.”
The Solactive ISS ESG Prime Index Series is available for licensing and may be used as the basis for ETFs and structured products, benchmarking purposes or as the starting universe for customised index strategies.
