Company & Organisation News, Press Releases, Uncategorized
July 2nd, 2020
Solactive releases market’s first index which orientates towards the FNG-Label with ESG provider imug | rating
As the topic of ESG gains momentum in the financial industry, the quantity of ESG branded solutions is rising, leaving investors in a maze of ESG branded options to choose from. In this context, independent ESG labels account for the identification of and the adherence to specific ESG standards and, therefore, serve as useful guidance for the socially responsible ESG investor.
To support investors, Solactive has teamed up with ESG provider imug | rating, using data from Vigeo Eiris (VE), to develop the Solactive VE imug Developed Markets ESG Quality Index. This index is a rules-based market-standard ESG solution, which orientates towards the FNG-Label of “Forum für Nachhaltige Geldanlagen,” the Sustainable Investment Forum (SIF) for Germany, Austria, and Switzerland.
The Solactive VE imug Developed Markets ESG Quality Index is derived from the Solactive GBS Developed Markets Large & Mid Cap USD Index and aims to comply with the minimum standards of the FNG-Label. As part of these minimum standards, investments in nuclear power, coal mining, significant coal-fired power generation, fracking, oil sands, weapons and armaments are not permitted and a norm-based screening with respect to the UN Global Compact is carried out by imug. In addition, imug trials the methodology against an ESG Assessment and excludes companies with a score lower than 30 out of 100 points. Finally, to promote transparency and international norms, the index over-weights companies that are in line with TCFD reporting requirements and/or have signed TCFD and UN Global Compact. A non-binding pre-test on the minimum exclusions has been conducted by the auditor of the FNG-Label, the University of Hamburg, and the results had been fine at the time of testing
Roland Kölsch, Managing Director, QNG (FNG-Label) comments: “The FNG-Label, as an established, rapidly growing SRI quality standard, deliberately focuses on a set of minimum criteria to ensure the initial recognition of sustainable investments. If there is now an index that is not only based on the necessary minimum exclusions but also implements elements of a stock selection or other requirements such as transparency that go beyond these, this is a good starting point for financial products that want to work on the quality of sustainable investments by incorporating further criteria.”
Timo Pfeiffer, Chief Markets Officer at Solactive: “An ever-increasing number of asset managers and banks in Germany, Austria, and Switzerland use the FNG-Siegel to validate their sustainable investment products. In the meantime, we notice that more and more investors make the FNG-Siegel mandatory for their investments. With this index, we present an important element for investors that wish to orientate towards this ESG Quality standard.”
Frieder Olfe, imug | rating: “Being a founding member of the FNG, we are a strong advocate of quality standards and welcome the rise of the FNG-Label. The ESG Quality Index is the first index that explicitly orientates towards the minimum criteria of FNG-Label and tracks its evolution.”
Thomas Montagnon, Vigeo Eiris: “Since the beginning of the year, we have noticed a considerable increase in the number of funds labelled FNG-Siegel. Our goal is to promote and participate in this movement in the German-speaking markets and thereby participate in the transfer of capital flows to funds with an explicit sustainable strategy. Thus, we thought it would be appropriate to engage in the definition of a solid framework using our ESG expertise. With the ESG Quality Index, we are providing a tool that will allow investors to approach the FNG-Siegel labelling process with confidence.”
Solactive is a leading provider of indexing, benchmarking, and calculation solutions for the global investment and trading community. Headquartered in Frankfurt, and with offices in Hong Kong, Toronto, Berlin, and Dresden, we innovate and disrupt the status quo as the partner of choice for our clients.
The unique blend of our 250 staff’s expertise in data, data science, financial markets, and technology enables our clients’ continued success through the delivery of a superior experience, unique customization capabilities, and the best value for money available in the industry. With more than 14,000 indices calculated daily, we offer a full suite of solutions, including market-leading ESG and thematic indices.
As at April 2020, Solactive served approximately 450 clients across the world, with approximately US$200 billion invested in products linked to our indices. Solactive is registered with ESMA as a benchmark administrator and is supervised by the BaFin.
About Vigeo Eiris
Vigeo Eiris is a global leader in ESG assessments, data, research, benchmarks and analytics. Leveraging our extensive proprietary database, we equip market players with the ESG insight they need to manage risks and better understand and address their social and environmental impact. Since 2019, Vigeo Eiris has been an Affiliate of Moody’s Corporation.
Vigeo Eiris has an industry unique ISO 9001: 2015 quality certification for its processes relating to methodology, assessments, sale and delivery of its data to all types of investors and issuers.
Vigeo Eiris is a Climate Bonds Initiative Verified Provider of Second Party Opinions.
With a team of nearly 300 experts of 30 different nationalities, Vigeo Eiris is present in Paris, London, Brussels, Casablanca, Hong Kong, Milan, New York, Rabat, and Santiago.
The Vigeo Eiris Global Network, comprising 4 exclusive research partners, is present in Brazil, Germany, Israel, and Japan.
imug | rating is one of the leading sustainability rating agencies in Germany and specialist for customized Environmental, Social and Governance (ESG) research. imug | rating has been active in the market for sustainable finance and socially responsible investment (SRI) for over 20 years – references include major asset managers, church and alternative banks as well as institutional investors and NGOs. imug | rating is known for tailor-made ESG solutions, high quality research and excellent client service. In Germany and Austria imug | rating exclusively represent the sustainability rating agency Vigeo Eiris, one of the major global service providers for sustainability research.
The information in this document does not constitute tax, legal or investment advice and is not intended as a recommendation for buying or selling securities. Solactive AG and all other companies mentioned in this document are not responsible for the consequences of reliance upon any opinion or statement contained herein or for any omission.
Solactive AG, Platz der Einheit 1, 60327 Frankfurt am Main, Germany. Registered Office: Frankfurt am Main, Registration Court: Amtsgericht Frankfurt am Main, HRB: 79986, USt-IdNr.: DE 255 598 976. Management Board: Steffen Scheuble, Christian Vollmuth, Timo Pfeiffer, and Dirk Urmoneit, Head of Supervisory Board: Dr Felix Mühlhäuser.