German-based index provider Solactive has released a new line of Environmental, Social and Governance indices for both the equity and fixed income spaces.
The Solactive ISS ESG Screened Index Series tracks the various size and regional segments of the global capital markets including Japan, the US, Europe and developing markets. The suite of indices is the result of a partnership between Solactive and ISS ESG, an ESG data and analytics provider.
ISS ESG is the responsible investment arm of Institutional Shareholder Services. It is contributing its ESG screener for the selection criteria of the suite of ESG indices. The screener reviews all of the companies which comprise the Solactive Global Benchmark Series.
ISS's ESG methodology, like most, takes in to consideration the United Nations Global Compact. Therefore the company must comply with the UN's standard of human and labour rights as well as not working within controversial industries such as nuclear weapons, fossil fuels, military or tobacco.
Timo Pfeiffer, Head of Research at Solactive, said in a statement: "Our new Benchmark series grants investors the opportunity to gain access to a broad universe of stocks or bonds without exposure to controversial business practices. Working with ISS ESG ensures credible and reputable results, which are crucial concerning the fact that a large number of investors put their trust into reliability."