Enabling a Canadian Bank to Create an Index for Investable Products

THE CHALLENGE

The client wanted to create an index for investable products in a market with a large exposure to the extractive industries.

OUR SOLUTION

Leveraging Sustainability Solutions’ Norm-Based Research, Controversial Weapons Research and ESG Corporate Rating, the index team developed an index comprising of Canadian large-cap securities. Index constituents were selected based on their alignment with established norms, such as the United Nations Global Compact, involvement in controversial sectors, and ESG rating. Further, the index constituents were weighted by Free Float Market Capitalization, which was adjusted for gender diversity (positive) and fossil fuel exposure (negative).

We delivered an index that supported the client’s bespoke needs by integrating strong sustainability considerations, without completely departing from the parent universe, based on high-quality data and research.