Germany-headquartered index provider Solactive writes that over the last few years, investors have been increasingly considering aligning investment decisions with ESG values.
Last year, this focus increased as the entire world watched heads of states’ debates on effective actions against climate change at the UN Climate Change Conference (COP26), the firm says. Within this framework, Solactive has expanded its relationship with Scotia Global Asset Management launching a series of reference indices for the Scotia Responsible Investing ETFs, which are listed on the NEO Exchange (NEO). The Solactive Responsible Index Series apply responsible investing screens for the companies to be eligible for the index series.
The Responsible Index Series screens exclude companies or issuers that do not comply with established norms, are materially involved in controversial business activities, have material exposure to fossil fuels and/or relatively high carbon intensity profile compared to the majority of their sector peers. Those standards are based on established norms such as the United Nations Global Compact, the exclusion of significant involvement in defined sectors as well as considerations of gender equality and GHG emission reduction.
The suite of Scotia Responsible Investing ETFs aims to replicate the performance of the Solactive Responsible Index Series, which include the Solactive Responsible Canadian Bond Universe Liquid ex MPL TR Index, the Solactive Responsible Canadian Equity Index, the Solactive Responsible U.S. Equity Index, and the Solactive Responsible International Equity Index.
Timo Pfeiffer, Chief Markets Officer at Solactive, says: “The trend of ESG has been increasingly embraced by the financial industry, which is a win-win situation for both investors and the environment. Every time that one of our ESG indices is licensed, we are contributing with our services to a greener and more sustainable future. We are pleased that Scotia Global Asset Management shares our vision and partnered with us to offer ESG solutions to investors, and we are looking forward to continue the partnership. ”
Neal Kerr, Head, Scotia Global Asset Management (Canada), comments: “We are pleased to partner with Solactive as the index provider for this lineup of Scotia ETFs, as they share our commitment to advancing ESG choices for investors.”