Ad-hoc Methodology Change (criteria relaxation) | Solactive Developed Real Estate ESG Climate Indices | Effective Date 31/10/2024

Today, on the 31/10/2024, Solactive announces the following changes to the methodology of the following Indices (the ‘Affected Indices’):

Rationale for Methodology Change

Solactive intends to assure to find an optimal selection result for the constraints set in the optimization process used to determine the index weights. Due to the ongoing changes in the index universe and the Carbon Risk Rating provided by the ESG Data Provider, this cannot be guaranteed with the current methodology. Therefore, the Carbon Risk Rating constraint will be defined as a “soft” constraint that can be relaxed in case no feasible solution can be derived.

Changes to the Index Guideline

The following Methodology changes will be implemented in the following points of the Index Guideline (ordered in accordance with the numbering of the affected sections):

Section 2.3: WEIGHTING OF THE INDEX COMPONENTS

From:

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b. Compared to the Index Universe, target an increase the Carbon Risk Rating of the Index by at least 10%.

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If no solution can be found, the constraints a, e, f, g, h, i, j and k are relaxed in an iterative manner until all constraints are met…

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To:

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b. Compared to the Index Universe, target an increase the Carbon Risk Rating of the Index by at least 10%, while the Index Carbon Risk Rating is floored at Carbon Risk Rating of the Index Universe.

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If no solution can be found, the constraints a, b, e, f, g, h, i, j and k are relaxed in an iterative manner until all constraints are met…

[…]

Defined terms used in this announcement, but not defined herein, have the meaning assigned to them in the respective index guideline of the Affected Indices. The amended version of the index guideline will be available on the effective date.