S&P DJI and RobecoSAM launch ESG smart beta indices
S&P Dow Jones Indices (S&P DJI) and RobecoSAM have launched the S&P ESG Index Series.
This index family aims to measure the performance of companies in its respective underlying index with a weighting scheme based on an ESG Factor Score, derived from RobecoSAM’s annual Corporate Sustainability Assessment (CSA).
The series consists of the S&P Global 1200 ESG, S&P 500® ESG, S&P Europe 350 ESG and S&P/TOPIX 150 ESG.
The methodology used excludes known biases such as market cap and industry, and avoids undesired factor exposures in the scores.
Alka Banerjee, managing director, head of Product Management, S&P Dow Jones Indices, said: “Sustainability issues can be sources of substantial risks but equally, substantial opportunities. We are proud to combine our experience and extensive know-how in developing smart beta indices with RobecoSAM’s world-class ESG credentials to create the S&P ESG Index Series, a unique offering for investors who want to use ESG as a smart beta factor.”
Guido Giese, head of Indices, RobecoSAM, added : “Now, ESG integration is accessible to each and every investor. Our new S&P ESG index family makes it easy for investors to track the performance of companies that have sustainable long-term operations without changing their standard benchmark.
“RobecoSAM’s Smart ESG approach represents the latest step in sustainability investing moving to the mainstream.”