S&P Dow Jones launches ESG index
Index provider, S&P Dow Jones Indices has launched its new index, the S&P 500 ESG index, which will be aligned with environmental, social and governance (ESG) guidelines and aim to replicate the S&P 500 benchmark.
According to the S&P Dow Jones, the new index could be used as both a performance tracking tool and a building block to create new ESG index-based investment and passive investing solutions such as exchange traded funds (ETFs).
The new index would target 75 per cent of the traditional S&P 500’s market capitalisation at the industry-level based on their Global Industry Classification Standard (GICS)
The firm also launched its new S&P DJI ESG Scores which could be used as a tool for a broad range of research, indexing and investment purposes. The scores would be calculated by SAM, a branch of ESG data, ratings and benchmarking specialist, RobecoSAM.
Additionally, the company announced plans to develop a global family of ESG indices which would offer regional and country-specific and mid-cap benchmarks used in the Americas, Europe, Middle East and Africa (EMEA) and Asia-Pacific (APAC).
“We are excited to bring to market these initiative ESG indices and scores. S&P Dow Jones Indices pioneered ESG indexing over 20 years ago with the 1999 launch of the Dow Jones Sustainability World Index, the first global sustainability benchmark,” S&P Dow Jones Indices’ chief executive, Alex Matturri, said.
“Our philosophy as an independent index provider is to offer choice to investors. We will continue to contribute to the growth of sustainable finance and economies through our indices.”
AUTHOR
Oksana Patron
Recommended for you
Lonsec and SQM Research have highlighted manager selection as a crucial risk for financial advisers when it comes to private market investments, particularly due to the clear performance dispersion.
Macquarie Asset Management has indicated its desire to commit the fast-growing wealth business in Australia by divesting part of its public investment business to Japanese investment bank Nomura.
Australia’s “sophisticated” financial services industry is a magnet for offshore fund managers, according to a global firm.
The latest Morningstar asset manager survey believes ETF providers are likely to retain the market share they have gained from active managers.
