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S&P Dow Jones Indices: Global Family of ESG Indices and an ESG Score

S&P Dow Jones Indices’ Core ESG offering includes a global family of ESG indices based on S&P Dow Jones Indices’ ESG scores. The global family includes the S&P 500® ESG Index as well as other regional and country-specific large- and mid-cap benchmarks used in the Americas; Europe, Middle East and Africa (EMEA); and Asia-Pacific. ESG indices will serve a diverse array of clients’ needs, including Core ESG Indices, Climate Indices, Thematic ESG Indices, Fixed Income, and ESG Indices.

 

UPDATED INFORMATION

Expanding Core ESG
S&P 500® ESG Index

Integrating Environmental, Social and Governance Values into the Core

The objectives of the S&P 500 ESG index are to provide a similar risk/return profile to the S&P 500 and to avoid companies that are not managing their businesses in line with ESG principles.

Since launch in 2019, the S&P ESG Indices have become the basis for:

  • ETFs:
  • SPDR® S&P 500 ESG ETF
  • Xtrackers S&P 500 ESG ETF
  • Invesco S&P 500 ESG ETF
  • Invesco S&P 500 ESG UCITS ETF
  • UBS S&P 500 ESG UCITS ETF
  • Futures:
  • E-mini S&P 500 ESG Futures
  • Options:
  • Cboe S&P 500® ESG Index Options

How the S&P 500 ESG Index is built:

Start with the S&P 500 constituents and exclude those associated with: Tobacco Controversial weapons Non-compliance with UN Global Compact (UNGC) ESG scores in the bottom 25% of their global GICS ® industry peer group Sort the remaining eligible constituents within each GICS ® industry group by their ESG scores Starting with the highest ranking ESG Scores, select constituents and target 75% of benchmark market capitalization within each industry group. Next, weight constituents by float-adjusted market capitalization. The remaining constituents are excluded from the Index S&P 500 Constituents Excluded from Index Included in Index Eligible & Ranked by ESG Score Ineligible 1 2 3
Creating Innovative Thematic ESG Indices
The S&P Paris-Aligned & Climate Transition Indices (S&P PACT™ Indices) supply the market with sustainable versions of S&P Dow Jones Indices benchmarks that are designed to:
Go beyond the Paris Agreement and align investments with a 1.5 degree Celsius warming trajectory toward achieving net-zero emissions by 2050
Adopt a strategy compliant with the proposed standards for the European Union Climate-Transition Benchmarks (CTBs) and Paris-aligned Benchmarks (PABs) and recommendations from the TCFD
Address numerous climate objectives efficiently while staying as close to the underlying index as possible with broad, diversified exposure

S&P Eurozone Historical Total Returns

201920182017Index Level100120140

Source: S&P Dow Jones Indices

Note: Data as of 4/30/2020. Index performance based on total returns in EUR. Chart is for illustrative purposes and reflects hypothetical historical performance

S&P Dow Jones Indices pioneered ESG indexing more than 20 years ago with the 1999 launch of the Dow Jones Sustainability World Index, the first global sustainability benchmark

Notes:

Source: S&P Dow Jones Indices

Note: Data as of 4/30/2020. Index performance based on total returns in EUR. Chart is for illustrative purposes and reflects hypothetical historical performance

Updated Information

The S&P 500® ESG Index: Integrating Environmental, Social, and Governance Values into the Core

April 1, 2019