Methodology Change | Solactive GPR 250 Developed ESG Index | Effective Date 19/08/2024

Today, on the 13/08/2024, Solactive announces the following changes to the methodology of the following Indices (the ‘Affected Indices’):

Rationale for Methodology Change

The methodology change focuses on limiting the carbon intensity contribution from individual large carbon emitters. Currently, all securities with a GRESB Real Estate Assessment Score of at least 80 and 90 are overweight by 20% and 40%, respectively. This overweighting can create challenges for the optimizer when a security has a large market capitalization and is a significant carbon emitter with a GRESB Real Estate Assessment Score of at least 80, as a substantial portion of the carbon budget is allocated to a single security, limiting sets of available solutions. To address this issue, securities contributing more than 300% of the average Parent Index carbon intensity and with a GRESB Score at least 80 are not overweight.

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):

2.3 WEIGHTING OF THE INDEX COMPONENTS

6. Weights of companies with a GRESB Real Estate Assessment Score of ≥ 90 and a CARBON INTENSITY below 300% of the average CARBON INTENSITY of the PARENT INDEX shall increase compared to the respective weight in the PARENT INDEX by at least 40%. If the resulting weight violates any of the single weight caps stipulated in 2.3.3., the security will receive the maximum possible weight under 2.3.3.
7. Weights of companies with a GRESB Real Estate Assessment Score of ≥ 80 and a CARBON INTENSITY below 300% of the average CARBON INTENSITY of the PARENT INDEX shall increase compared to the respective weight in the PARENT INDEX by at least 20%. If the resulting weight violates any of the single weight caps stipulated in 2.3.3., the security will receive the maximum possible weight under 2.3.3.

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.