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Guideline Clarification | Solactive Candriam Factors Sustainable Corporate Euro Bond Index | Effective date 22st October 2020

Today, on the 19th October 2020, Solactive announces the following changes to the guideline of the following Index (the ‘Affected Index’):

NAME

RIC

ISIN

Products

Solactive Candriam Factors Sustainable Corporate Euro Bond Index

.SOLCACBE 

DE000SLA3C16

 

 

Rationale for the guideline clarification:

An update on the controversial activities text of the guideline is needed so is in line with legal and regulatory changes.

Proposed guideline clarification:

  • Update of controversial activities section of the guideline (Section 4.2.):

 Old version:

[…] Companies that are not ranked “High Risk” based on their Combined Macro and Micro scores are then further reviewed to see if they violate the Controversial Activities criteria or the United Nations Global Compact as detailed below:

Controversial Activities:

  • Armament: are involved in the production or sale of anti-personnel landmines, cluster bombs, depleted uranium, and/or chemical/nuclear/biological weapons, regardless of the revenues involved and/or generate more than 3% of their turnover from the production or the sale of conventional weapons and/or generate more than 5% of their sales/revenues from the production, manufacturing, trade, testing or maintenance of white phosphorous
  • Activities in oppressive regimes: large presence (Revenues > 1%) in highly oppressive regimes
  • Adult content: Revenues > 5%
  • Alcohol: Revenues > 10% without any responsible policy
  • Animal Testing: Responsible policy of no legal requirement or breaches to legislation
  • Gambling: Revenues > 5%
  • Genetic modification: Revenues > 10%
  • Nuclear: Revenues > 30%
  • Tobacco: Revenues > 5%
  • Thermal Coal: Revenues > 10%
  • Unconventional Oil & Gas: Revenues > 10%
  • Conventional Oil & Gas: Revenues based on natural gas or renewable energy < 40%
  • Electricity Generation*: Carbon Intensity > 429 (GCO2/kWh)
  • If carbon emission intensity data is not available:
    • % power production based on coal >10%
    • % power production based on oil & gas > 30%
    • % power production based on nuclear sources > 30%
  • *In 2020, the following new threshold will be applicable: Carbon intensity > 408 (gCO2/kWh)

 

New version:

[…] Companies that are not ranked “High Risk” based on their Combined Macro and Micro scores are then further reviewed to see if they violate the Controversial Activities criteria or the United Nations Global Compact as detailed below:

Controversial Activities:

  • Armament: are involved in the production or sale of anti-personnel landmines, cluster bombs, depleted uranium, and/or chemical/nuclear/biological weapons, regardless of the revenues involved and/or generate more than 3% of their turnover from the production or the sale of conventional weapons and/or generate more than 5% of their sales/revenues from the production, manufacturing, trade, testing or maintenance of white phosphorous
  • Activities in oppressive regimes: large presence (Revenues > 1%) in highly oppressive regimes
  • Adult content: Revenues > 5%
  • Alcohol: Revenues > 10% without any responsible policy
  • Animal Testing: Responsible policy of no legal requirement or breaches to legislation
  • Gambling: Revenues > 5%
  • Genetic modification: Revenues > 10%
  • Nuclear: Revenues > 30%
  • Tobacco: Revenues > 5%
  • Thermal Coal: Revenues > 10%
  • Unconventional Oil & Gas: Revenues > 10%
  • Conventional Oil & Gas: Revenues based on natural gas or renewable energy < 40%
  • Electricity Generation*: Carbon Intensity > 408 (GCO2/kWh)
  • If carbon emission intensity data is not available:
    • % power production based on coal >10%
    • % power production based on oil & gas > 30%
    • % power production based on nuclear sources > 30%
  • *In 2021, the following new threshold will be applicable: Carbon intensity > 393 (gCO2/kWh)