Methodology change | Solactive Clean Energy Index | Effective Date 10 November 2020

Today, on the 3rd of November 2020, Solactive announces the following changes to the methodology of the following indices (the ‘Affected Indices’):

Rationale for Methodology change

In order to improve the thematic reflection of Clean Energy companies in the Index Universe of the Affected Indices, Solactive AG decided to add an additional selection filter excluding securities of companies deriving more than 10% of their revenues from Thermal Coal Power Generation or more than 25% of their total production capacity form Thermal Coal Power Generation. 

Changes to the Index Guideline

The wording in the Index Guideline is replaced as follows:

1. Section 2.2

OLD WORDING:

2.2.     SELECTION OF THE INDEX COMPONENTS

[…]

Notwithstanding the above, if the total number of Index Components is determined to be less than 25, then the cumulative capacity thresholds in the condition 4.A.ii.1, 4.A.iii.1 and 4.B.i as well as the Clean Energy Capacity Share in 4.B.ii shall be lowered in 10% steps until the total number of Index Components is determined to be equal to 25 or above (in case more companies will become eligible when reducing the thresholds simultaneously).

The selection of the Index Components is fully rule-based and the Index Administrator cannot make any discretionary decisions.

NEW WORDING:

2.2.     SELECTION OF THE INDEX COMPONENTS

[…]

Notwithstanding the above, if the total number of Index Components is determined to be less than 25, then the cumulative capacity thresholds in the condition 4.A.ii.1, 4.A.iii.1 and 4.B.i as well as the Clean Energy Capacity Share in 4.B.ii shall be lowered in 10% steps until the total number of Index Components is determined to be equal to 25 or above (in case more companies will become eligible when reducing the thresholds simultaneously).

Finally, securities of companies deriving more than 10% of their revenues from Thermal Coal Power Generation or more than 25% of their total production capacity form Thermal Coal Power Generation, are excluded. The analysis is based on data provided by the Data Provider 2.

The selection of the Index Components is fully rule-based and the Index Administrator cannot make any discretionary decisions.

2. Section 6- Definitions

The definition of Data Provider is adjusted as follows:

OLD WORDING:

“Data Provider” is Global Data. For more information, please visit: https://www.globaldata.com/.

NEW WORDING:

“Data Provider 1” is Global Data. For more information, please visit: https://www.globaldata.com/.

The definition of Data Provider 2 is added as follows:

“Data Provider 2” is Sustainalytics. For more information, please visit: https://www.sustainalytics.com/.

The exclusion criteria mentioned in the Section 2.2 will be applied to the current Index Components and the securities of companies not fulfilling the exclusion criteria will be deleted from the index on November 10, 2020 (effective November 11, 2020). The weights of the corresponding components will be redistributed pro-rata to the remaining index components.  

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.