Solactive writes that healthy ecosystems are essential to sustain life as we know it.
However, their survival is at risk and the current biodiversity crisis must be tackled from all possible angles, the firm says, explaining that they, Iceberg Data Lab and Societe Generale have developed a range of biodiversity screened index strategies allowing investors to consider the impact of companies on biodiversity into their investments, namely the Solactive Transatlantic Biodiversity Screened 100 RW Index, the Solactive Transatlantic Biodiversity Screened 150 CW Index and the Solactive Transatlantic Biodiversity Screened Index. The indices are licensed to Societe Generale for the issuance of structured products.
Solactive writes that all indices represent securities from corporate issuers from the US and the Eurozone that have been screened, based on their impact on biodiversity relatively to their industry peers and based on market filters, while not breaching certain activity- and norm-based exclusion criteria.
The biodiversity impact assessment is based on data by Solactive’s strategic partner Iceberg Data Lab. Their Corporate Biodiversity Footprint metric reflects the extent to which ecosystems affected by a company’s business have been degraded from their pristine natural state. The score factors in a company’s land use, air and water pollution and GHG emissions throughout their value chain (Scope 3).
The Solactive Transatlantic Biodiversity Screened 100 RW Index is a combination of two sub-indices focusing on the US and the Eurozone respectively that select 50 securities each and are weighted based on a minimum variance optimization while the Solactive Transatlantic Biodiversity Screened 150 CW Index is a combination of two sub-indices that select 100 securities from the US and 50 from the Eurozone and are weighted based on the free float market capitalization. The Solactive Transatlantic Biodiversity Screened Index does not target a specific number of securities and applies an equal weighting.
Timo Pfeiffer, Chief Markets Officer at Solactive, says: “It is estimated that more than half of the world’s total GDP is moderately or highly dependent on nature and its services. Biodiversity is essential for the health and well-being of our planet and our economy. We are thrilled to launch this set of indices focusing on screening companies on their impact on biodiversity with our strategic partner Iceberg Data Lab and our long-standing client Societe Generale.”
Bessem Braham, Financial Engineer at Societe Generale. Says: “Contributing to the preservation of biodiversity is a key element of Societe Generale’s commitments to support the environmental transition. In this context, we are thrilled to be able to provide financial investments opportunities that factor in the specific risks to biodiversity. It is an innovative project that resonates with our ambition to supporting our clients in their sustainable development path.”
Matthieu Maurin, CEO of Iceberg Data Lab, says: “As COP15 just put emphasis on the importance of enhanced disclosure from corporates about their impact on nature, we are proud to see Iceberg Data Lab’s Corporate Biodiversity Footprint being used to design portfolio strategies. This partnership with Solactive and Societe Generale illustrates the demand of sustainable investors for innovative investment solutions focused on biodiversity.”
