FTSE Russell launches two new index series to support ESG integration into passive investment
- FTSE Russell launches new FTSE Global Climate Index Series and FTSE ESG Index Series
- Index series utilize data from FTSE Green Revenues data model and FTSE ESG Ratings and data model
- Helps investors incorporate the transition to a global green economy into core benchmarks and passive investments
- Combines sustainable investing with innovative approach to factor index construction – Smart Sustainability
FTSE Russell, the global index, analytics and data provider, announces the expansion of its Sustainable Investment index offering with the launch of the FTSE Global Climate Index Series and the FTSE ESG Index Series. The new index series build on the launch of the award-winning FTSE All-World ex CW Climate Balanced Factor Index, the first FTSE Russell index to combine a smart beta factor approach alongside climate change considerations.
The FTSE Global Climate Index Series uses innovative index methodology to weight index constituents by three climate change measures while maintaining a risk and return profile similar to broad market benchmarks. The transparent, rules-based construction reflects the performance of eligible securities from the FTSE All-World®, FTSE All-Share® and the Russell 1000® Indexes, with constituent green revenues measured by FTSE Russell’s Green Revenues data model.
The FTSE ESG Index Series is designed to help investors align investment and ESG objectives into a broad benchmark, whilst maintaining industry neutrality. Company weights within each index are tilted using FTSE Russell’s ESG Ratings and data model and reflect the performance of eligible securities from the FTSE Developed, FTSE Emerging, FTSE All-Share and Russell 1000 Indexes.
Tony Campos, Director, ESG Product Management, FTSE Russell said:
“Coming out of COP23 there is agreement that development and adoption of green technology and services are contributing to an acceleration in the transition to a green economy. We are seeing a clear move towards integrating environmental, social and governance considerations into core benchmarks and passive investments as part of this trend. Responding to demand from clients we are expanding our range of climate change and ESG benchmarking tools to help align sustainability considerations with specific investment objectives.”
London Stock Exchange Group is a pioneer in supporting the growing global green and sustainable financing movement, providing a comprehensive green and sustainable product offering.
Further information can be found online at FTSE Global Climate Index Series and FTSE ESG Index Series.
– Ends –
For further information:
Ed Clark +44 (0) 20 7797 1222
Tim Benedict +1 212 314 1199
Hong Kong: Fennie Wong
Sydney: Laura McCrackle +852 2164 3267
+61 2 8823 3526
Notes to editors:
About FTSE Russell:
FTSE Russell is a global index leader that provides innovative benchmarking, analytics and data solutions for investors worldwide. FTSE Russell calculates thousands of indexes that measure and benchmark markets and asset classes in more than 70 countries, covering 98% of the investable market globally.
FTSE Russell index expertise and products are used extensively by institutional and retail investors globally. Approximately $15 trillion is currently benchmarked to FTSE Russell indexes. For over 30 years, leading asset owners, asset managers, ETF providers and investment banks have chosen FTSE Russell indexes to benchmark their investment performance and create ETFs, structured products and index-based derivatives.
A core set of universal principles guides FTSE Russell index design and management: a transparent rules-based methodology is informed by independent committees of leading market participants. FTSE Russell is focused on applying the highest industry standards in index design and governance and embraces the IOSCO Principles. FTSE Russell is also focused on index innovation and customer partnerships as it seeks to enhance the breadth, depth and reach of its offering.
FTSE Russell is wholly owned by London Stock Exchange Group.
For more information, visit www.ftserussell.com
© 2017 London Stock Exchange Group plc and its applicable group undertakings (the “LSE Group”). The LSE Group includes (1) FTSE International Limited (“FTSE”), (2) Frank Russell Company (“Russell”), (3) FTSE TMX Global Debt Capital Markets Inc. and FTSE TMX Global Debt Capital Markets Limited (together, “FTSE TMX”) and (4) MTSNext Limited (“MTSNext”). All rights reserved.
FTSE Russell® is a trading name of FTSE, Russell, FTSE TMX and MTS Next Limited. “FTSE®”, “Russell®”, “FTSE Russell®” “MTS®”, “FTSE TMX®”, “FTSE4Good®” and “ICB®” and all other trademarks and service marks used herein (whether registered or unregistered) are trade marks and/or service marks owned or licensed by the applicable member of the LSE Group or their respective licensors and are owned, or used under licence, by FTSE, Russell, MTSNext, or FTSE TMX.
All information is provided for information purposes only. Every effort is made to ensure that all information given in this publication is accurate, but no responsibility or liability can be accepted by any member of the LSE Group nor their respective directors, officers, employees, partners or licensors for any errors or for any loss from use of this publication or any of the information or data contained herein.
No member of the LSE Group nor their respective directors, officers, employees, partners or licensors make any claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE Russell Indexes or the fitness or suitability of the Indexes for any particular purpose to which they might be put.
No member of the LSE Group nor their respective directors, officers, employees, partners or licensors provide investment advice and nothing in this communication should be taken as constituting financial or investment advice. No member of the LSE Group nor their respective directors, officers, employees, partners or licensors make any representation regarding the advisability of investing in any asset. A decision to invest in any such asset should not be made in reliance on any information herein. Indexes cannot be invested in directly. Inclusion of an asset in an index is not a recommendation to buy, sell or hold that asset. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.
No part of this information may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the applicable member of the LSE Group. Use and distribution of the LSE Group index data and the use of their data to create financial products require a licence from FTSE, Russell, FTSE TMX, MTSNext and/or their respective licensors.