New index concept to support the protection of biodiversity: “Solactive Vigeo Eiris Biodiversity Index”
For the Solactive Vigeo Eiris Biodiversity Index, Vigeo Eiris calculates a Protection of Biodiversity Score of listed companies based on their proprietary classification of companies’ sustainability objectives. The index, calculated and maintained by Solactive, focuses on companies that protect the diversity of biological systems and offer sustainable goods and services with a connection to biodiversity.
The index, calculated and maintained by Solactive, focuses on companies that protect the diversity of biological systems and offer sustainable goods and services with a connection to biodiversity. It is made up of 64 constituents that operate in the business fields Forest Products & Paper, Building Material, and Mining & Metals, amongst others.
As of Nov. 15, the economic sector with the highest weight in the index is
– Non-Energy Materials (with 27 companies and 43.0% of the index’ weight), followed by
– Finance (with 14 companies and 21.1% of the index’ weight),
– Utilities (with 11 companies and 16.4% of the index’ weight), Energy (with 8 companies and 12.6% of the index’ weight),
– and Industrials (with 4 companies and 6.8% of the index’ weight).
Thus, only five sectors are represented in the index as of the latest. The index universe contains listed companies from both developed and emerging markets. To qualify as an index member, companies need to either have an “advanced” or a “robust” Protection of Biodiversity Score (following Vigeo Eiris classification), plus a contribution to sustainable goods and services connected to biodiversity (such as bio-based chemicals, recycling services, rainwater harvesting, water quality preservation, etc.). Moreover, companies are required to have a formalized commitment towards biodiversity protection, as well as no controversies regarding biodiversity, no involvement in the production of genetically modified organisms, and no involvement in the mistreatment of animals.
The index components are reviewed and equally weighted on a quarterly basis.