Our best-in-class solutions consider investors’ need to integrate environmental, social and governance metrics alongside the traditional risk-return framework. And, because we understand the need to integrate our clients’ views and sustainability objectives, our curated, open ESG data and partnering architecture offers investors and clients choice and the ability to customize solutions.
“Exclude” strategies – an efficient starting base
This category is a starting point in responsible engagement and risk mitigation, and comprises ESG exclusion and integration strategies. For investors seeking to raise the ESG profile of portfolios but maintain low tracking errors and similar risk-return characteristics to STOXX and DAX benchmarks.
“Enhance” strategies – optimizing sustainable investing
Our ‘Enhance’ category has been designed for investors who wish to maximize their portfolios’ ESG profiles while maintaining benchmark exposure. The category is made up of STOXX and DAX indices that aim to maximize the sustainability profile of portfolios.
Key benefits
Superior design
Accurate and transparent non-financial factors are used to identify material ESG risks and growth opportunities
State-of-the-art index construction
The combination of superior index construction expertise with leading risk model and optimization tools allows for the creation of powerful and creative indices
Transparency and simplicity
We provide a clear and easy-to-explain, rules-based framework to incorporate ESG considerations into investment processes
Liquidity and tradability
Liquidity considerations always play a crucial role in the development and composition of indices
Key ESG indices
More information
Related news & research
The sector bottleneck in carbon emissions reduction
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.
Monthly Index News: June 2024
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.
What’s in a sustainability fund name? In Europe, increasing rigor
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.