Smart Sustainability is the combination of sustainability parameters and risk premia via factor exposure within a single index solution. It reflects the growing demand for the incorporation of both factors and Environmental, Social, and Governance (ESG) data into investment tools, including indexes.
The Smart Sustainability index family reflects the performance of stocks with the application of a range of factor and sustainability adjustments. This index family achieves the desired exposures by combining factor characteristics such as Value, Quality, Low Volatility and Size with sustainability parameters such as ESG practices and climate change.
Index rules should be read in conjunction with supportingFTSE Russell noticesThese notices advise of advance changes in index methodology, which may not be reflected in index rules until the change effective date. The notices may also communicate revisions in index treatment in the period up to a rule change.