Industry Updates

Solactive snags first ESG index clients

Scott Longley

Solactive has announced that Handelsbanken's two fund management companies are switching from their previous index providers with respect to over 20 ESG-based equity and fixed income indices.

Handelsbanken Fonder and Xact are the first clients to adopt Solactive's recently launched Solactive ISS ESG Screened Index Series, a family of indices that aims to track various size and regional segments of the global capital markets, including only companies operating with market standards on ESG controversy screens.

For the Handelsbanken Global SmaÃäbolag Index Criteria fund Solactive replaces an MSCI index and for the Handelsbanken Euro Corporate Bond Fund it replaces a Bloomberg Barclays index.

Timo Pfeiffer, head of research at Solactive, hailed the news coming as it does only a matter of weeks after the introduction of the new indices.

"With more global players providing ESG-screened services for their clients, there is clearly a development towards impact investing; ESG is not a trend," he added.

Solactive teamed up with ESG Provider ISS ESG, for the new indices. ISS ESG provides independent and high-quality ESG data and analytics and takes into account several factors, which are, among others, derived from the United Nations Global Compact.

They include a norm-based screening such as verified violation of human and labour rights, involvement in controversial weapons like biological and nuclear weapons as well as anti-personnel mines, and business operations in sectors including fossil fuel, military, cannabis and tobacco.

PaÃàr NuÃàrnberg, CEO at Xact KapitalfoÃàrvaltning, said the newly launched ESG index suite by Solactive and ISS ESG will "facilitate existing as well as upcoming product development in line with growing client demand for sustainable indices we see from our clients."


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