ESG & Sustainability

New ESMA rules establish which funds can carry terms such as ‘ESG’ or ‘SRI’ in their names. While the guidelines are designed for funds, they are likely to impact the names and methodologies of underlying indices too.

Stocks rose in July amid expectations that the Federal Reserve is getting close to its first interest-rate cut since 2020. The STOXX World AC index rose 1.7% last month when measured in US dollars and including dividends, taking its 2024 gain to 13.4%. The STOXX Global 1800 index added 1.9% in the month.

A portfolio’s decarbonization becomes more difficult once an emissions reduction of 60% is achieved, as high-emissions sectors become depleted. Thereafter, the portfolio construction approach — whether exclusion or optimization — will make a difference to the resulting tracking error and size of the portfolio.

US stocks rose in June as investors weighed the prospects for interest-rate cuts amid slowing inflation. European shares fell as results from the European Parliamentary elections increased political risk.

As the European Securities and Markets Authority (ESMA) tightens guidelines on fund names to mitigate greenwashing risks, fund managers face new challenges. In our latest report, we explore the implications of ESMA’s new rules on the use of terms like “ESG” and “sustainable” in fund names, and how these changes may impact both investment strategies and marketing practices.

The fight to preserve our nature’s systems is intensifying, presenting both additional risks and opportunities for investors. The ISS STOXX Biodiversity indices offer a multi-step framework to address biodiversity challenges while employing state-of-the-art datasets.

The DVP index tracks the gross cash dividends paid out in a year by constituents of the Eurozone’s sustainability benchmark. Dividend futures on the standard EURO STOXX 50 benchmark are a popular contract on Eurex both for hedging and directional strategies.

Changes were announced as part of the June regular review of the DAX 50 ESG, DAX 50 ESG+, DAX 30 ESG, DAX ESG Target, DAX ESG Screened, MDAX ESG+, MDAX ESG Screened and DAX indices.

Stocks rose for the sixth month in seven in May, rebounding from losses in April, as investors continued to weigh the prospects for interest-rate cuts and amid higher-than-expected earnings reports.

Stocks fell for the first month in six in April as US inflation data stoked investors’ concerns that interest rates in the world’s largest economy may not drop this year.

Stocks gained for a fifth straight month in March, lifting the STOXX® Global 1800 index to a new all-time high, as investors raised their estimates for global economic growth.

As biodiversity garners increased attention and data availability expands, understanding its effect on portfolios becomes paramount. In our first edition of Perspectives, we spotlight how ISS ESG’s innovative methodologies can help assess a portfolio’s impact and natural capital dependencies.