The FTSE ESG Index Series is designed to help investors align investment and ESG objectives into a broad benchmark.
The FTSE ESG Indexes provide risk/return characteristics similar to the underlying universe with the added benefit of improved index level ESG performance. The indexes uses FTSE Russell’s tilt methodology to adjust company weights based on FTSE Russell's ESG Ratings. Subsequently, industry neutral re-weighting is applied so that the industry weights in each index match the underlying index universe.
The FTSE ESG Low Carbon Emissions Target Exposure Indexes target a reduction in index level carbon emissions and significant improvement in the aggregate ESG Rating. The indexes are constructed using FTSE Russell’s Target Exposure methodology.
For more information please visit our Target Exposure spotlight.