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 replicate the S&P 500 benchmark.
The new index could be used as both a performance tracking tool and a source for creating new ESG index-based investment and passive investing solutions such as exchange-traded funds (ETFs). The new index targets 75 per cent of the traditional S&P 500’s market capitalisation at the industry-level based on their Global Industry Classification Standard (GICS).
New ESG scores
The group 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. 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, 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” said S&P Dow Jones Indices’ CEO Alex Matturri.
CTMfile take: ESG Factor scoring is going to have a major impact on investing worldwide.
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