Methodology Change | Solactive ISS ESG Filtered Indices | Effective Date 2025-07-09

Solactive announces the following changes to the methodology of the following indices (the ‘Affected Indices’):

Rationale for the Methodology Change

ISS ESG’s Norm-Based Research (NBR) evaluates the environmental, social, and governance (ESG)
impact of corporate issuers by identifying and assessing corporate controversies. The framework is
built on established international standards.
ISS ESG has announced a methodology update to the NBR that will be implemented by the end of
June 2025. Going forward, a score of 10 (Red Signal) will only be assigned to verified ‘very severe’
cases. Verified ‘severe’ cases will now receive a score of 9. Previously, the red signal was not
strictly tied to the severity level.

In order to reflect the adjustments by ISS and the feedback received on the respective Market Consultation, Solactive decided to apply a Targeted Revision of the Norm-Based Research filter which means to exclude only “severe” cases in critical areas (Environment, Labour Rights, and Human Rights), while continuing to include Anti-Corruption cases.

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):
Section 2.2 SELECTION OF THE INDEX COMPONENTS

old: 

new: