Announcement – Methodology Change | Several Solactive Indices | Effective Date 5th March 2025

Today, on 04/03/2025, Solactive announces the following changes to the methodology of the following indices (the ‘Affected Indices’):

NAME	RIC
ESG Exclusions Index	.ESGEXCI
ESG Exclusions Enhanced Index	.ESGEXCEI

 

Rationale for Methodology Change

====================================================

Solactive believes in order to align with standard market practices, the current ESG screening should be adjusted to include activities where the total sums of production, distribution, and related products/services are also exceeding the existing threshold. This would be aligned with the scope of the index as it is meant to capture all companies fitting the involvement category.

Changes to the Index Guideline

==================================

The following Methodology change/(s) is/are proposed in the following point/(s) of the ESG Exclusions Index Guideline as highlighted:

2.2.         SELECTION OF THE INDEX COMPONENTS

Categories	Inclusion Criterion
Established norms around Environment, Human Rights, Corruption and Labour Rights	Non-compliance with UNGC principles and related international norms and standards
Controversy	Controversies with the Level 5
Tobacco	[5% Production <OR> 5% Retail <OR> 5% Related Products/Services <OR> 5% Sum of (Production, Retail, Related Products/Services)]*
Defense – Weapons	[5% Military Contracting Weapons <OR> 5% Military Contracting Weapons – Related Products/Services**<OR> 5% Sum of (Military Contracting Weapons, Related Products/Services)]***
Defense – Controversial Weapons	Any direct Involvement or any indirect Involvement through corporate ownership
Small Arms	[5% Civilian customers (Assault and non-assault weapons) <OR> 5% Key Components <OR> 5% Military/law enforcement customers <OR> 5% Retail/Distribution (Assault and non-assault weapons)<OR>5% Sum of (Civilian customers, Key Components, Military/law enforcement customers, Retail/Distribution)]*
Coal	[10% Thermal Coal Extraction <OR> 10% Power Generation <OR> 10% Supporting Products/Services**<OR>10% Sum of (Thermal Coal Extraction, Power Generation, Supporting Products/Services)]***
Conventional Oil & Gas	[50% Generation <OR> 20% Production <OR> 50% Supporting Products/Services**<OR>50% Sum of (Generation, Production, Supporting Products/Services)]***
Unconventional Oil & Gas	[20% Oil Sands Extraction <OR> 20% Artic Oil & Gas Exploration/Extraction <OR> 20% Shale Energy Extraction**<OR>20% Sum of (Extraction, Arctic Oil & Gas Exploration/Extraction, Shale Energy Extraction)]***
Gambling	[5% Operations <OR> 5% Specialized Equipment <OR> 5% Supporting Products/Services**<OR>5% Sum of (Operations, Specialized Equipment, Supporting Products/Services)]***
Adult Entertainment	[5% Production <OR> 5% Distribution**<OR>5% Sum of (Production, Distribution)]***
Alcohol	[5% Production <OR> 5% Retail <OR> 5% Related Products/Services**<OR>5% Sum of (Production, Retail, Related Products/Services)]***

 

The following Methodology change/(s) is/are proposed in the following point/(s) of the ESG Exclusions Enhanced Index Guideline as highlighted:

2.2.         SELECTION OF THE INDEX COMPONENTS

Categories	Inclusion criterion
Established norms around Environment, Human Rights, Corruption and Labour Rights	Non-compliance with UNGC principles and related international norms and standards
Controversy	Controversies with the Level 5
Tobacco	[5% Production <OR> 5% Retail <OR> 5% Related Products/Services<OR> 5% Sum of (Production, Retail, Related Products/Services)]*
Defense – Weapons	[5% Military Contracting Weapons <OR> 5% Military Contracting Weapons – Related Products/Services**<OR> 5% Sum of (Military Contracting Weapons, Related Products/Services)]***
Defense – Controversial Weapons	Any direct Involvement or any indirect Involvement through corporate ownership
Small Arms	[5% Civilian customers (Assault and non-assault weapons) <OR> 5% Key Components <OR>  5% Military/law enforcement customers <OR>  5% Retail/Distribution) <OR>5% Sum of (Civilian customers, Key Components, Military/law enforcement customers, Retail/Distribution)]*
Coal	[5% Thermal Coal Extraction <OR> 5% Power Generation <OR> 5% Supporting Products/Services <OR> Power Generation Capacity Increase**<OR>5% Sum of (Thermal Coal Extraction, Power Generation, Supporting Products/Services)]***
Conventional Oil & Gas	[5% Generation <OR> 5% Production <OR> 5% Supporting Products/Services <OR> Capacity Increase**<OR>5% Sum of (Generation, Production, Supporting Products/Services)] ***
Unconventional Oil & Gas	[5% Oil Sands Extraction <OR> 5% Artic Oil & Gas Exploration/Extraction <OR> 5% Shale Energy Extraction <OR> Capacity Increase**<OR>5% Sum of (Extraction, Arctic Oil & Gas Exploration/Extraction, Shale Energy Extraction)]***
Nuclear Power	[5% Production <OR> 5% Distribution <OR> 5% Supporting Products <OR> Capacity Increase**<OR>5% Sum of (Production, Distribution, Supporting Products)]***
Alcohol	[5% Production <OR> 5% Retail <OR> 5% Related Products/Services**<OR>5% Sum of (Production, Retail, Related Products/Services)]***
Gambling	[5% Operations <OR> 5% Specialized Equipment <OR> 5% Supporting Products/Services**<OR>5% Sum of (Operations, Specialized Equipment, Supporting Products/Services)]***
Adult Entertainment	[5% Production <OR> 5% Distribution**<OR>5% Sum of (Production, Distribution)]***