German index provider Solactive has expanded its environmental, social and governance (ESG) offering with the launch of its ESG big data index, assisted by ARC Responsible Investment.
The Solactive ARC ESG Big Data Europe index tracks the performance of high dividend European stocks with sufficient ESG scores based on data provided by OWL Analytics and Investment Research.
OWL Analytics aggregates hundreds of sources of ESG data to create company scores before Solactive then applies the financial screenings such as liquidity, dividend-yield and risk filters to build the final product.
Solactive 'proves' benefits of multi-asset portfolios
The index uses the Solactive GBS Developed Markets Large & Mid Cap index as a benchmark, similarly with its technology leaders index, but incorporates a lower volatility and lower drawdowns filter.
Timo Pfeiffer (pictured), head of research at Solactive, said in a statement: “We are incorporating cutting-edge ESG metrics derived from a big data approach, thereby excluding non-compliant activities and sectors as well as polluting companies, which allows our clients to access the latest innovations in ESG.”