iSTOXX^® L&G UK Multi-Factor ESG

The STOXX Climate Transition Benchmark Indices are based on liquid securities from a selection of STOXX Benchmark Indices. The indices are constructed to follow the EU Climate Transition Benchmark (EU CTB) requirements outlined in the Commission Delegated Regulation (EU) 2020/1818 supplementing Regulation (EU) 2016/1011 of the European Parliament and of the Council as regards minimum standards for EU Climate Transition Benchmarks.

Companies identified as non-compliant based on norms-based Screening assessment, or are involved in Controversial Weapons, as identified by ISS ESG are not eligible for selection. Tobacco Producers are also excluded. Furthermore, STOXX will exclude companies that ISS ESG assesses to have significant obstruction in the following UN SDGs: SDG 12 Responsible Consumption and Production, SDG 13 Climate Action, SDG 14 Life Below Water and SDG 15 Life On Land.

The weighing process follows an optimization process to keep the tracking error less than on equal to 1.5% compared to the parent indes while meeting the minimum requirements detailed in the regulation. The STOXX Climate Transition Benchmark Indices aim to reduce their greenhouse gas intensity by at least 30% when compared to their underlying benchmarks. They are also designed to meet the year on year 7% decarbonization target.

High climate impact sector weights of the STOXX Climate Transition Benchmark Indices are not underweighted relative to the underlying benchmark. The indices also overweigh securities with Science Based Targets, as verified by the Science Based Target initiative (SBTi).

Index Guides, Benchmark statement, and other reports are available under the Data tab.

The STOXX Future Water ESG Index is designed to capture the performance of companies with involvement in the water sector, including water utilities, firms engaged in water treatment and related technologies, as well as those developing equipment and infrastructure essential to water management. STOXX uses a detailed breakdown of companies´ revenues and their patent data to identify companies that have a significant revenue or innovation exposure to the theme. Revenue breakdown utilizes FactSet RBICS and patent data is sourced from EconSight. The index incorporates ESG considerations by applying exclusionary screens on: Norms Based Screening, Human Rights controversy, Environmental Protection controversy, Controversial Weapons, Product Involvement, emissions intensity and energy consumption intensity, ESG rating and SDG 6 Impact Rating.

Index Guides, Benchmark statement, and other reports are available under the Data tab.