Solactive has once again joined forces with ISS ESG, the responsible investment arm of Institutional Shareholder Services, to launch an index offering investors exposure to companies active in reducing plastic pollution.

The Solactive ISS ESG Beyond Plastic Waste index is rebalanced semi-annually and each constituent is equally weighted.

It includes companies offering solutions for efficient plastic recycling and reductions of plastic pollutions as well as firms providing reusable products to replace single-use plastic.

Plastic waste has become a key priority for the world’s governments and supranational institutions.

One example is the inception of the United Nation Environment’s Global Plastics Platform, which is an indication of further regulation on the issue.

Meanwhile, in June 2018, all G7-countries, except the US and Japan, agreed on a charter to work with the industry towards the production of fully recyclable or reusable plastic by 2030.

Until 2015, humanity across its history produced 7.8bn tonnes of plastic which equates to roughly one tonne per person alive.

Timo Pfeiffer (pictured), head of research at Solactive, commented: “The reduction of plastic waste is one of the greatest contemporary challenges confronting society.

“The index recognises companies, which take on the responsibility in an early stage, building a framework for asset managers to provide their clients the opportunity to invest consciously.”

Marija Kramer, managing director at ISS ESG, added: “The index is very timely, given the sharp focus across the public and private sector, globally, on the mounting problem of plastic waste.

“With this index, investors will now be able to readily identify those companies taking a proactive approach to addressing plastic pollution and, conversely, portfolio companies who fall behind in this area.”

This is the third time Solactive has worked with ISS ESG this year. In June, the duo launched the Solactive ISS ESG Prime index series while in Feburary, they unveiled the Solactive ISS ESG Screened index series.