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Solactive expands Biodiversity Index Series with Iceberg Data Lab

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Solactive writes that to halt the deterioration of our ecosystems, a variety of solutions and contributions are needed, including in the finance industry. 

Only three months after a launch together, Solactive, Iceberg Data Lab, and Societe Generale have decided to expand their biodiversity screened index strategies with three new indices: the Solactive Japan Biodiversity Screened 50 CW Index, the Solactive World Biodiversity Screened 200 CW Index, and the Solactive Global Biodiversity Screened 200 CW JP 10 JPY. The firm writes that both the second and the third ones allow investors to consider the impact of companies on biodiversity into their investments on a global scale.

The Solactive World Biodiversity Screened 200 CW Index is a combination of the new Solactive Japan Biodiversity Screened 50 CW Index and two other existing sub-indices focusing on the US and the Eurozone. The composition includes 100 securities from the US, 50 from the Eurozone and 50 from Japan. The Solactive Global Biodiversity Screened 200 CW JP 10 JPY Index is constructed in the same way but assigns a greater weight to the Japan sub-index. 

In addition to the new three indices, a second version of the Solactive Transatlantic Biodiversity Screened 150 CW Index, which was also released in December last year, is now part of the offer, the firm writes. The new Solactive Transatlantic Biodiversity Screened 150 CW EZ 55 Index has a higher allocation to the Eurozone compared to the first version. The new index is constructed in the same way as the previous one, except that it has a higher weight on the Eurozone than before, namely 55 per cent instead of 50 per cent.

The four indices are licensed to Societe Generale for the issuance of structured products. They include securities from corporate issuers from the respective regions that exhibit lower impact on biodiversity compared to their industry peers. Moreover, they exclude securities from corporate issuers that breach certain activity- and norm-based 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 a company’s land use, air and water pollution, as well as GHG emissions throughout their value chain (Scope 3).

Timo Pfeiffer, CMO of Solactive, says:“Ecosystem services alone are estimated to be worth between 125 and 140 USD trillion annually. Healthy ecosystems are invaluable to our society and our economy. We are thrilled to  expand 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, so shortly after the initial launch.”

Foued Jaziri, Global Head of Societe Generale Index, says: “Contributing to the preservation of biodiversity is a key part of Societe Generale’s commitments to support the environmental transition. Entrusted by our clients, we are thrilled to be able to extend the financial investments opportunities that factor the specific risks to biodiversity, while taking into account the bespoke needs of our customers.”

Matthieu Maurin, CEO of Iceberg Data Lab says: “We are proud to see the extension of the suite of biodiversity indices developed by our strategic partner Solactive and Societe Generale. This illustrates the growing commitment of the private sector towards Biodiversity and the appetite for our innovative and science-based environmental data solutions.”

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