Overview
Announcements

Methodology Change | Several RAFI Indices | Effective Date 13/02/2025

Today, on 30/01/2025, Solactive announces the following changes to the methodology of the following indices (the ‘Affected Indices’):

NAME

RIC

ISIN

RAFI Multi-Factor Climate Transition Developed EUR Index GTR

.RMFCTDET

DE000SL0C3W9

RAFI Multi-Factor Climate Transition Developed EUR Index NTR

.RMFCTDEN

DE000SL0C3X7

RAFI Multi-Factor Climate Transition Developed EUR Index PR

.RMFCTDEP

DE000SL0C3V1

RAFI Multi-Factor Climate Transition Developed GBP Hedged Index GTR

.RMFCTDGT

DE000SL0C317

RAFI Multi-Factor Climate Transition Developed GBP Hedged Index NTR

.RMFCTDGH

DE000SL0C2T7

RAFI Multi-Factor Climate Transition Developed GBP Hedged Index PR

.RMFCTDGP

DE000SL0C325

RAFI Multi-Factor Climate Transition Developed GTR Index

.RAMFCTDT

DE000SL0BWK5

RAFI Multi-Factor Climate Transition Developed NTR Index

.RAMFCTDN

DE000SL0BWJ7

RAFI Multi-Factor Climate Transition Developed PR Index

.RAMFCTDP

DE000SL0BWH1

RAFI Multi-Factor Climate Transition Developed USD Index GTR

.RMFCTDUT

DE000SL0C3Z2

RAFI Multi-Factor Climate Transition Developed USD Index NTR

.RMFCTDUN

DE000SL0C309

RAFI Multi-Factor Climate Transition Developed USD Index PR

.RMFCTDUP

DE000SL0C3Y5

RAFI Fundamental Global Carbon Neutral TR Index

.RCNGLT

DE000SL0D7F4

RAFI Fundamental Global Carbon Neutral PR Index

.RCNGLP

DE000SL0D7D9

RAFI Fundamental Global Carbon Neutral NTR Index

.RCNGLN

DE000SL0D7E7

RAFI Fundamental Emerging Markets Carbon Neutral Exclusion Screened TR Index

.RCNXEMT

DE000SL0D661

RAFI Fundamental Emerging Markets Carbon Neutral Exclusion Screened PR Index

.RCNXEMP

DE000SL0D646

RAFI Fundamental Emerging Markets Carbon Neutral Exclusion Screened NTR Index

.RCNXEMN

DE000SL0D653

RAFI Fundamental Global Low Carbon Transition TR Index

.RLCTGLT

DE000SL0D7M0

RAFI Fundamental Global Low Carbon Transition PR Index

.RLCTGLP

DE000SL0D7K4

RAFI Fundamental Global Low Carbon Transition NTR Index

.RLCTGLN

DE000SL0D7L2

RAFI Fundamental Global Low Carbon Transition TR Index GBP Hedged

.RLCTGLHT

DE000SL0D7J6

RAFI Fundamental Global Low Carbon Transition PR Index GBP Hedged

.RLCTGLHP

DE000SL0D7G2

RAFI Fundamental Global Low Carbon Transition NTR Index GBP Hedged

.RLCTGLHN

DE000SL0D7H0

RAFI Fundamental Global Low Carbon Transition Index GBP Dev Currency Hedged

.RLCTGDHN

DE000SL0G359

RAFI Fundamental Global Reduced Carbon Pathway 3.5% TR Index

.RCPGLBT

DE000SL0D2N9

RAFI Fundamental Global Reduced Carbon Pathway 3.5% PR Index

.RCPGLBP

DE000SL0D2L3

RAFI Fundamental Global Reduced Carbon Pathway 3.5% NTR Index

.RCPGLBN

DE000SL0D2M1

RAFI Fundamental Global Reduced Carbon Pathway 3.5% GBP Hedged NTR Index

.RCPGLGHN

DE000SL0D2P4

RAFI Fundamental Developed Custom Reduced Carbon Pathway 3.0% TR Index

.RCPDEVCT

DE000SL0D2G3

RAFI Fundamental Developed Custom Reduced Carbon Pathway 3.0% PR Index

.RCPDEVCP

DE000SL0D2E8

RAFI Fundamental Developed Custom Reduced Carbon Pathway 3.0% NTR Index

.RCPDEVCN

DE000SL0D2F5

RAFI Fundamental Emerging Custom Reduced Carbon Pathway 3.0% TR Index

.RCPEMCT

DE000SL0D2K5

RAFI Fundamental Emerging Custom Reduced Carbon Pathway 3.0% PR Index

.RCPEMCP

DE000SL0D2H1

RAFI Fundamental Emerging Custom Reduced Carbon Pathway 3.0% NTR Index

.RCPEMCN

DE000SL0D2J7

Rationale for Methodology Change

To keep global warming to no more than 1.5 °C – as called for in the Paris Agreement – emissions need to be reduced by 45% by 2030 and reach net zero by 2050, Solactive and RAFI have decided to incorporate a net zero component to the Affected Indices. The objective of the proposed changes is to incorporate net zero data without incurring significant impact on portfolio characteristics. This is done by tilting the weight of index constituents toward companies that are aligning with net zero goals (as defined by ISS) in an iterative process.

Changes to the Index Guideline

The following Methodology changes will be implemented in the following points of the Index Guideline:

  • RAFI Multi-Factor Climate Transition Developed – Section 3.3.1
  • RAFI Multi-Factor – Section 2.6.1, step 5
  • RAFI Fundamental Reduced Carbon Pathway – Section 3.4.1
  • RAFI Fundamental Global Low Carbon Transition – Section 3.3.1
  • RAFI Fundamental Carbon Neutral – Section 3.1.6

Addition:

Net Zero Alignment

Modified z-scores for each company are adjusted to reflect commitments to achieving Net Zero by 2050. Companies are rated as; “Aligned”, “Aligning”, “Committed to Aligning” or “Not Aligned” based on factors such as a published 2050 Net Zero target, interim targets, material GHG disclosures and decarbonization strategy. Modified z-scores are adjusted as follows: