Index provider S&P Dow Jones Indices (SPDJI) has launched environmental, social and governance (ESG) versions for 22 of its leading indices.
The newly launched indices include ESG versions of SPDJI’s country and regional larger and midcap benchmarks across the Americas, Europe, Middle East and Africa (EMEA) and Asia-Pacific (APAC).
The 22 new ESG indices:
S&P/ASX 200 ESG
S&P Europe 350
S&P Japan 500 ESG
S&P Global 1200 ESG
S&P United States LargeMidCap ESG
S&P Canada LargeMidCap ESG
S&P Korea LargeMidCap ESG
S&P North America LargeMidCap ESG
S&P Europe Developed LargeMidCap ESG
S&P Mid-East and Africa Developed LargeMidCap ESG
S&P Asia Pacific Developed LargeMidCap ESG
S&P Developed LargeMidCap ESG
S&P Europe Emerging LargeMidCap ESG
S&P Latin America Emerging LargeMidCap ESG
S&P Mid-East and Africa Emerging LargeMidCap ESG
S&P Asia Pacific Emerging Large MidCap ESG
S&P Emerging LargeMidCap ESG
S&P Global LargeMidCap ESG
S&P Asia Pacific Developed ex Korea ESG
S&P Asia Pacific Emerging Plus LargeMidCap ESG
S&P Developed BMI ex Korea LargeMidCap ESG
S&P Emerging Plus LargeMidCap ESG
The launch follows SPDJI’s release of the ESG version of the famous S&P 500 index which UBS quickly listed its UBS S&P 500 ESG ETF that tracks the index.
SPDJI’s new indices incorporate the companies’ ESG scores as well as business activities and the UN Global Compact (UNGC). The ESG scores are overseen by the SPDJI’s governance group and are calculated by data analyst company SAM.
The indices exclude companies which make revenue within the tobacco or controversial weapons industry. Companies which don’t align with the UNGC or have poor UNGC scores are not included as well as those companies with ESG scores in the bottom 25%.
Alex Matturri, Chief Executive Officer at S&P Dow Jones Indices said in a statement: "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."