Methodology Change | Solactive European Equity Index | Effective Date 29/11/2024

Today, on the 29/11/2024, Solactive announces the following changes to the methodology of the following Indices (the ‘Affected Indices’):

Please note the changes will be effective for the upcoming review to the composition for close of business 2024-12-17.

Rationale for Methodology Change

Change is driven by the fact that the ESG data provider is no longer able to deliver the required ESG data, resulting in a switch to an alternative provider.

Additionally, to align the indices with the latest ESG standards, we are introducing two new environmental criteria related to Thermal Coal Mining and Oil Sands.

Changes to the Index Guideline

Section 2.1

From:

On the Pool of Stocks resulting from above an ESG sustainability screening is applied based on indications from Vigeo EIRIS. This screening is based on the ten principles of the UN Global Compact as well as specific exclusions related to controversial sectors. Companies in violations of UN Global Compact principles or going beyond predefined thresholds for controversial sectors will be removed from the index.  The extensive list of the controversial sectors that are screened out include: Alcohol, Animal Welfare, Controversial weapons, Firearms, Gambling, Genetic engineering, Hazardous chemicals, Intensive farming, Nuclear, Military production, Production of fur, Pornography, Tobacco.

In addition, there is also a second screening level based on Cluster Munition activities and secondly on the UNGC Scores, where the top 5 companies performing worst in terms of environment, human rights, labor rights and anticorruption are removed.

To:

Solactive evaluates all companies meeting the above requirements based on the ESG criteria outlined in the table below. The evaluation is based on data provided by the Data Provider: