German-based index provider Solactive has partnered
for the launch of its Solactive ISS ESG Prime Index series. The range of indices track regional segments and only include companies which fulfil strict environmental, social and governance (ESG) performance requirements.
These performance requirements are set by ISS ESG, the responsible investment arm of Institutional Shareholder Services, and determines which companies qualify as “Prime”. ISS ESG considers each company’s ESG risk exposure and impact of their business model and value chain.
Furthermore, companies operating in accordance with market standards on ESG controversy screens are eligible for inclusion. These standards are based on the established norms such as the United Nations Global Compact and exclusion of defined sectors such as alcohol, tobacco, weapons and adult entertainment, to name a few.
Solactive: Outperforming plain vanilla bond indices
Initially, the series covers global, emerging and developed markets as well as the US and European markets. The range is a development on Solactive’s already existing Global Benchmark Series and therefore more specific countries, regions or sectors can be added upon request.
Timo Pfeiffer, head of research at Solactive, commented: “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.”
