Methodology Change | Solactive Future Energy ESG index & Solactive Eurozone Sustainability Index | Effective Date 21/11/2024
Today, on the 08/11/2024, Solactive announces the following changes to the methodology of the following Indices (the ‘Affected Indices’):
|
NAME |
RIC |
ISIN |
|
Solactive Future Energy ESG index PR |
.SOLFTENP |
DE000SL0FPF0 |
|
Solactive Future Energy ESG index NTR |
.SOLFTENN |
DE000SL0FPG8 |
|
Solactive Future Energy ESG index GTR |
.SOLFTENT |
DE000SL0FPH6 |
|
Solactive Eurozone Sustainability Index |
.SOLESG |
DE000SLA00T4 |
|
Solactive Eurozone Sustainability Index NTR |
.SOLESGN |
DE000SLA70L4 |
Rationale for Methodology Change
Solactive has determined that to align with EU Paris-aligned benchmarks, the following changes will be added to align with Article 12 Exclusions with Commission Delegated Regulation (EU) 2020/1818. This is to allow all products that track the index to maintain the sustainability label to maintain attractiveness to investors.
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):
2.1 Index Universe Requirements (.SOLFTEN)
From:
|
Theme |
Topic |
Exclusion criterion |
|
Norm-Based Research |
Environment |
Verified failure to respect established norms <OR> severe and very severe controversies |
|
Human Rights |
Verified failure to respect established norms <OR> very severe controversies |
|
|
Corruption |
Verified failure to respect established norms |
|
|
Labour Rights |
||
|
Controversial Weapons Research |
Chemical weapons |
Verified ongoing involvement |
|
Biological weapons |
||
|
Nuclear weapons |
||
|
Depleted Uranium |
||
|
Nuclear weapons outside the NPT |
||
|
Cluster munitions |
||
|
Anti-personnel mines |
||
|
Activity-Based Screening
|
Coal |
0% Production <OR> 10% Power Generation <OR> any involvement in mining |
|
Oil |
5% Extraction <OR> 10% Power Generation |
|
|
Oil Sands |
Any involvement (includes 0% Production & Exploration) |
|
|
Hydraulic Fracturing (including Shale Oil) |
Any involvement (includes 0% Production & Exploration) |
|
|
Deepwater Drilling |
0% Production & Exploration |
|
|
Arctic Drilling |
0% Production & Exploration |
|
|
Fossil Fuel |
10% Services |
|
|
Nuclear Power Generation |
5% overall |
|
|
Military Equipment |
5% overall |
|
|
Civil Firearms |
5% overall |
|
|
Tobacco |
0% Production <OR> 5% Distribution or Services |
|
|
ESG Research |
ESG Overall Rating |
D-, D or D+ |
|
Environmental |
Energy Consumption Intensity* |
300 |
|
Carbon Intensity** |
1500 |
|
|
Explanation: % figures refer to revenue threshold (for degree of involvement) above which criterion is breached * Measured as GWh per million EUR revenue ** Measured as Scope 1+2 Emissions / USD revenues |
||
To:
|
Theme |
Topic |
Exclusion criterion |
|
Norm-Based Research |
Environment |
Verified failure to respect established norms <OR> severe and very severe controversies |
|
Human Rights |
Verified failure to respect established norms <OR> very severe controversies |
|
|
Corruption |
Verified failure to respect established norms |
|
|
Labour Rights |
||
|
Controversial Weapons Research |
Chemical weapons |
Verified ongoing involvement |
|
Biological weapons |
||
|
Nuclear weapons |
||
|
Depleted Uranium |
||
|
Nuclear weapons outside the NPT |
||
|
Cluster munitions |
||
|
Anti-personnel mines |
||
|
Activity-Based Screening
|
Coal |
> 0% Production, Refining & Processing <AND> Trade <OR> >= 5% Power Generation <OR> any involvement in mining |
|
Oil |
>= 5% Extraction |
|
|
Oil Sands |
Any involvement (includes 0% Production & Exploration) |
|
|
Fossil Fuel |
>= 10% Distribution <AND> Oil and Gas Extraction & Refining & Processing |
|
|
Hydraulic Fracturing (including Shale Oil) |
Any involvement (includes 0% Production & Exploration) |
|
|
Deepwater Drilling |
> 0% Production & Exploration |
|
|
Arctic Drilling |
> 0% Production & Exploration |
|
|
Fossil Fuel Power Generation |
>= 50% Total Power <AND> Biomass |
|
|
Nuclear Power Generation |
>= 5% overall |
|
|
Military Equipment |
>= 5% overall |
|
|
Civil Firearms |
>= 5% overall |
|
|
Tobacco |
> 0% Production <OR> >= 5% Distribution or Services |
|
|
ESG Research |
ESG Overall Rating |
D-, D or D+ |
|
Environmental |
Energy Consumption Intensity* |
>= 300 |
|
Carbon Intensity** |
>= 1500 |
|
|
* Measured as GWh per million EUR revenue ** Measured as Scope 1+2 Emissions / USD revenues |
||
2.1 Index Universe Requirements (.SOLESG)
From:
|
Theme |
Topic |
Exclusion criterion |
||
|
Norm-Based Research(severe and very severe only) |
Environment |
Environmental Protection: Direct Involvement Environmental Protection: Supply Chain Environmental Protection: Financier
|
||
|
Human Rights |
Fundamental Human Rights: Direct Involvement Fundamental Human Rights: Supply Chain Fundamental Human Rights: Financier |
|||
|
Business Malpractice |
Accounting / disclosure standards: Direct Involvement Bribery: Direct Involvement |
|||
|
Labour Rights |
Child Labour: Direct Involvement Child Labour: Supply Chain Forced Labour: Direct Involvement Forced Labour: Supply Chain Labour Standards: Direct Involvement Labour Standards: Supply Chain Union Rights: Direct Involvement Union Rights: Supply Chain Workplace Discrimination: Direct Involvement Workplace Discrimination: Supply Chain
|
|||
|
SECTOR BASED SCREENING
|
Abortifacients |
Production (Indicated for Abortion): Revenue Share > 0.00 % |
||
|
Abortion |
abortion: Any Tie |
|||
|
Alcohol |
Production: Revenue Share ≥ 5.00%
|
|||
|
Animal Testing |
Non-Pharmaceutical – Beyond legal requirements: Any Tie Non-Pharmaceutical – Total: Any Tie
|
|||
|
Animal Welfare |
Fur – Production: Level of Involvement > 0.00% Fur – Distribution: Level of Involvement > 0.00%
|
|||
|
Civilian Firearms |
Production and Services: Revenue Share > 0.00% |
|||
|
Controversial Weapons |
Controversial Weapons: Verified Involvement |
|||
|
Fossil Fuels – Coal
|
Extractives – Production: Revenue Share > 0.00% Energy – Production: Revenue Share ≥ 10.00%
|
|||
|
Fossil Fuels – Oil
|
Extractives – Production: Revenue Share > 0.00% Energy – Production: Revenue Share ≥ 10.00%
|
|||
|
Fossil Fuels – Unconventional Extraction Methods
|
Arctic Drilling – Production: Any Tie Arctic Drilling – Exploration: Any Tie Hydraulic Fracturing: Revenue Share (Total) Oil Sands – Production: Revenue Share > 0.00% Oil Sands – Exploration: Revenue Share > 0.00%
|
|||
|
Gambling |
|
|||
|
GMO
|
Agriculture – Production: Revenue Share > 0.00%
|
|||
|
Hazardous Substances
|
Hazardous Substances Lists : ChemSec SIN List, REACH Candidate List, REACH Authorisation List
|
|||
|
Military Equipment and Services
|
Production and Services: Revenue Share ≥ 5.00% Production and Services: Revenue Share (Combat Involvement) > 0.00% Production and Services: Revenue Share (Non-Combat Involvement) ≥ 5.00%
|
|||
|
Nuclear Power
|
Total: Revenue Share ≥ 5.00% Power Generation – Production: Revenue Share > 0.00% Uranium – Production: Revenue Share > 0.00% Service: Revenue Share ≥ 5.00%
|
|||
|
Pornography
|
Total (Age Restricted Involvement): Revenue Share ≥ 5.00% Production (Age Restricted Involvement): Revenue Share ≥ 5.00% Distribution (Age Restricted Involvement): Revenue Share ≥ 5.00%
|
|||
|
Stem Cell Research
|
Human Embryonic Stem Cells: Specialized Company Human Embryonic Stem Cells: Any Tie Enabling Technology: Any Tie Contact Research Organization: Any Tie
|
|||
|
Tobacco
|
|
To:
|
Theme |
Topic |
Exclusion criterion |
||
|
Norm-Based Research(severe and very severe only) |
Environment |
Environmental Protection: Direct Involvement Environmental Protection: Supply Chain Environmental Protection: Financier
|
||
|
Human Rights |
Fundamental Human Rights: Direct Involvement Fundamental Human Rights: Supply Chain Fundamental Human Rights: Financier |
|||
|
Business Malpractice |
Accounting / disclosure standards: Direct Involvement Bribery: Direct Involvement |
|||
|
Labour Rights |
Child Labour: Direct Involvement Child Labour: Supply Chain Forced Labour: Direct Involvement Forced Labour: Supply Chain Labour Standards: Direct Involvement Labour Standards: Supply Chain Union Rights: Direct Involvement Union Rights: Supply Chain Workplace Discrimination: Direct Involvement Workplace Discrimination: Supply Chain
|
|||
|
SECTOR BASED SCREENING
|
Abortifacients |
Production (Indicated for Abortion): Revenue Share > 0.00 % |
||
|
Abortion |
abortion: Any Tie |
|||
|
Alcohol |
Production: Revenue Share ≥ 5.00%
|
|||
|
Animal Testing |
Non-Pharmaceutical – Beyond legal requirements: Any Tie Non-Pharmaceutical – Total: Any Tie
|
|||
|
Animal Welfare |
Fur – Production: Level of Involvement > 0.00% Fur – Distribution: Level of Involvement > 0.00%
|
|||
|
Civilian Firearms |
Production and Services: Revenue Share > 0.00% |
|||
|
Controversial Weapons |
Controversial Weapons: Verified Involvement |
|||
|
Fossil Fuels – Coal
|
Extractives – Production: Revenue Share > 0.00% Refining – Processing: Revenue Share > 0.00% Trade: Revenue Share > 0.00% Power Generation: Revenue Share ≥ 5.00%
|
|||
|
Fossil Fuels – Oil
|
Extractives – Production: Revenue Share > 0.00% Energy – Production: Revenue Share ≥ 10.00%
|
|||
|
Fossil Fuels
|
Oil – Extractives – Production: Revenue Share <AND> Oil – Energy – Production: Revenue Share <AND> Gas – Extractives – Production: Revenue Share <AND> Gas – Energy – Production: Revenue Share <AND> Distribution ≥ 10.00 % |
|||
|
Fossil Fuels – Power Generation |
Total Power: Revenue Share <AND> Biomass: Revenue Share ≥ 50.00% |
|||
|
Fossil Fuels – Unconventional Extraction Methods
|
Arctic Drilling – Production: Any Tie Arctic Drilling – Exploration: Any Tie Hydraulic Fracturing: Revenue Share (Total) Oil Sands – Production: Revenue Share > 0.00% Oil Sands – Exploration: Revenue Share > 0.00%
|
|||
|
Gambling |
|
|||
|
GMO
|
Agriculture – Production: Revenue Share > 0.00%
|
|||
|
Hazardous Substances
|
Hazardous Substances Lists : ChemSec SIN List, REACH Candidate List, REACH Authorisation List
|
|||
|
Military Equipment and Services
|
Production and Services: Revenue Share ≥ 5.00% Production and Services: Revenue Share (Combat Involvement) > 0.00% Production and Services: Revenue Share (Non-Combat Involvement) ≥ 5.00%
|
|||
|
Nuclear Power
|
Total: Revenue Share ≥ 5.00% Power Generation – Production: Revenue Share > 0.00% Uranium – Production: Revenue Share > 0.00% Service: Revenue Share ≥ 5.00%
|
|||
|
Pornography
|
Total (Age Restricted Involvement): Revenue Share ≥ 5.00% Production (Age Restricted Involvement): Revenue Share ≥ 5.00% Distribution (Age Restricted Involvement): Revenue Share ≥ 5.00%
|
|||
|
Stem Cell Research
|
Human Embryonic Stem Cells: Specialized Company Human Embryonic Stem Cells: Any Tie Enabling Technology: Any Tie Contact Research Organization: Any Tie
|
|||
|
Tobacco
|
|
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.