Methodology change | EUROPEAN CLIMATE CHANGE ESG | Effective Date 28th February 2025

Today, Solactive announces the following changes to the methodology of the following Indices (the ‘Affected Indices’):

Rationale for Methodology Change

The current ESG data provider has decommissioned its services. As a result, Solactive has modified the methodology to ensure the index’s continuation while maintaining the integrity of ESG assessments and alignment with the index strategy. In addition, a clarification of the selection of the selection pool will be implemented.

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 6. Definitions

From: 

“ESG Research Provider” is VIGEO

…

“SELECTION POOL” is provided quarterly by the ESG Research Provider VIGEO. It consists of European
companies, screened for a number of ESG constraints. The companies in the selection universe need to
fulfill the following requirements:
(a) VIGEO ESG score of at least 40/100
(b) VIGEO ESG score greater than their sector peers
(c) No controversies with a severity critical
(d) If VIGEO Carbon Footprint is A or B then
VIGEO Energy Transition score greater than 40/100 VIGEO Energy Transition score greater than
their sector peers If VIGEO Carbon Footprint is C then
VIGEO Energy Transition score greater than 50/100
VIGEO Energy Transition score greater than their sector peers
INDEX GUIDELINE
18
Version 3.0 – 10 July 2023
If VIGEO Carbon Footprint is D then for each VIGEO Sector, VIGEO Energy Transition score is the
maximum. In case of equal, it will be selected the best in term of ESG score.
And
VIGEO Energy Transition score greater than 50/100
VIGEO Energy Transition score greater than their sector peers
(e) No major involvement in Weapons, Tobacco and Nuclear

To: 

“Data providers” are Minerva Analytics and ISS.

“ESG Research Provider” is MINERVA

…

“Selection Pool” is provided quarterly by the ESG Research Provider. It consists of European companies, screened for a number of ESG constraints. The companies in the selection universe need to fulfill the following requirements:

(a) ESGPerformanceScore greater than equal to 40.

(b) ESGPerformanceScore greater than their sector peers

(c) No controversies with a severity critical

(d) If the Carbon Score is A, B or C:

                CarbonRiskRating greater than or equal to 50

     If the Carbon score is D:

                CarbonRiskRating greater than or equal to 60

(e) No major involvement in Weapons, Tobacco and Nuclear

Removal of: 

(i) For each rebalancing of the index, companies which are part of the most carbon intensive group
(companies with a carbon footprint in “D”) will receive an engagement letter from the Index Administrator.
Through the engagement process, the companies will be asked to provide more information on their
strategy towards the energy transition.
From the inclusion date, companies are given 12 months to respond.
Companies which do not respond during this timeframe would be excluded from the investment universe
unless a relevant answer is provided that documents progress in accordance with the requirements of the
ESGRESEARCH PROVIDER.