Methodology Change | Global Ethical Values Index | Effective Date 21/08/2024
Today, on the 14/08/2024, Solactive announces the following changes to the methodology of the following Indices (the ‘Affected Indices’):
|
NAME |
RIC |
ISIN |
|
Global Ethical Values Index PR |
.GEVXP |
DE000SL0EBU2 |
|
Global Ethical Values Index NTR |
.GEVXN |
DE000SL0EBV0 |
|
Global Ethical Values Index TR |
.GEVXT |
DE000SL0EBW8 |
Rationale for Methodology Change
The index represents securities that comply with ethical and ecological, social and governance standards. In order to align the index with the latest standards for ESG investing, Solactive will adjust the ESG criteria as described below. Additionally, as we currently observe a high concentration in the markets, we will include a cap of 9% for individual securities in the index.
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):
REMOVALS in section 2.2. SELECTION OF THE INDEX COMPONENTS:
|
Sector-Based Screening |
Greenhouse gas |
High GHG intensity (scope 1 & 2) |
|
Stem cell |
Research Cloning companies that conduct stem cell research with cells derived from human embryos or conduct embryonic stem cell research using human embryos derived from cloning techniques |
ADDITIONS in section 2.2. SELECTION OF THE INDEX COMPONENTS:
|
Sector-Based Screening |
Metallurgical Coal |
5% |
|
Oil & Gas |
5% Distribution <OR> 5% Generation <OR> 30% Equipment and Services <OR> 30% Pipelines and Transportation <OR> 5% Trading <OR> 5% Extraction and Production |
CHANGES in section 2.3. WEIGHTING OF THE INDEX COMPONENTS
Before: All Index Components of a Cluster are weighted so that the weight of the Cluster in the Index corresponds to the weight of the respective Cluster in the Index Universe
After: All Index Components of a Cluster are weighted so that the weight of the Cluster in the Index corresponds to the weight of the respective Cluster in the Index Universe while capping the weight of each Index Component at 9%.
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.