Index Constituents Must Hold “Prime” Rating For Inclusion
LONDON (July 16, 2019) — ISS ESG, the responsible investment arm of Institutional Shareholder Services Inc., today announced the launch of Solactive ISS ESG Prime Index Series to allow investors to identify and select top environmental, social, and governance (ESG) performers based on ISS ESG ratings.
The Solactive ISS ESG Prime Index Series tracks companies fulfilling ambitious, absolute ESG performance requirements. These eligible companies, categorized as “Prime” by ISS ESG, achieve or exceed the sector-specific performance requirements defined by ISS based on the ESG risk exposure and impact of their respective business models and value chains (absolute best-in-class approach). In addition, only companies identified by ISS ESG as operating in accordance with market standards on ISS ESG controversy screens are eligible for inclusion. Those standards are based on established norms such as the United Nations Global Compact and the absence of significant involvement in defined sectors. The indices aim to align with current market and regulatory ESG frameworks and reflect better alignment than their conventional benchmark counterparts with Paris Accord climate goals.
The Solactive ISS ESG Leaders Index Series launches with five indices covering discrete market segments: Global, Developed Markets, Emerging Markets, U.S., and Europe.
“We are pleased to announce the launch of this index series in furtherance of our aim to deliver cutting-edge and industry leading ESG solutions to institutional investors, globally,” said Marija Kramer, Managing Director with ISS ESG. “With the Solactive ISS ESG Prime Index Series, investors will now be able to identify best-in-class ESG performers with both precision and efficiency.”
Drawing on ISS ESG’s Turnkey Index Solutions, investors are able to choose from a range of existing thematic and benchmark indices from global index providers building on ISS’ unique and proprietary data to track their portfolio’s performance and create index-linked investment products.
In addition, investors can leverage ISS ESG’s Custom Index Solutions to promote unique ESG strategies with broad ESG insight and the ability, working with an index provider of their choice, to create exclusive, tailor-made indices to best meet individual investors’ demands and objectives. Indices using Custom Index Solutions can be set up thematically (e.g., with a focus on climate change or water impact) or according to a wide set of client-specific ESG requirements.
More information about the ISS ESG Index Solutions can be found here.