Methodology Change | Solactive L&G Low Carbon Transition | Effective Date 01/04/2022
Today, on the 18/03/2022, Solactive announces the following changes to the methodology of the following Indices (the ‘Affected Indices’):
|
NAME |
RIC |
ISIN |
|
Solactive L&G Low Carbon Transition APAC ex Japan GBP Index NTR |
.SLCTBPJN |
DE000SL0BN55 |
|
Solactive L&G Low Carbon Transition APAC ex Japan GBP Index PR |
.SLCTBPJP |
DE000SL0BN48 |
|
Solactive L&G Low Carbon Transition APAC ex Japan GBP Index TR |
.SLCTBPJT |
DE000SL0BN63 |
|
Solactive L&G Low Carbon Transition Developed Markets GBP Index NTR |
.SLCTBDMN |
DE000SL0B8Q1 |
|
Solactive L&G Low Carbon Transition Developed Markets GBP Index PR |
.SLCTBDMP |
DE000SL0B319 |
|
Solactive L&G Low Carbon Transition Developed Markets GBP Index TR |
.SLCTBDMT |
DE000SL0B8R9 |
|
Solactive L&G Low Carbon Transition Emerging Markets GBP Index NTR |
.SLCTBEMN |
DE000SL0BN89 |
|
Solactive L&G Low Carbon Transition Emerging Markets GBP Index PR |
.SLCTBEMP |
DE000SL0BN71 |
|
Solactive L&G Low Carbon Transition Emerging Markets GBP Index TR |
.SLCTBEMT |
DE000SL0BN97 |
|
Solactive L&G Low Carbon Transition Europe ex UK GBP Index NTR |
.SLCTBEBN |
DE000SL0BNW9 |
|
Solactive L&G Low Carbon Transition Europe ex UK GBP Index PR |
.SLCTBEBP |
DE000SL0BNV1 |
|
Solactive L&G Low Carbon Transition Europe ex UK GBP Index TR |
.SLCTBEBT |
DE000SL0BNX7 |
|
Solactive L&G Low Carbon Transition Global GBP Index NTR |
.SLCTBGMN |
DE000SL0B3Z3 |
|
Solactive L&G Low Carbon Transition Global GBP Index PR |
.SLCTBGMP |
DE000SL0B3Y6 |
|
Solactive L&G Low Carbon Transition Global GBP Index TR |
.SLCTBGMT |
DE000SL0B301 |
|
Solactive L&G Low Carbon Transition Japan GBP Index NTR |
.SLCTBJPN |
DE000SL0BN22 |
|
Solactive L&G Low Carbon Transition Japan GBP Index PR |
.SLCTBJPP |
DE000SL0BN14 |
|
Solactive L&G Low Carbon Transition Japan GBP Index TR |
.SLCTBJPT |
DE000SL0BN30 |
|
Solactive L&G Low Carbon Transition North America GBP Index NTR |
.SLCTBNAN |
DE000SL0BNZ2 |
|
Solactive L&G Low Carbon Transition North America GBP Index PR |
.SLCTBNAP |
DE000SL0BNY5 |
|
Solactive L&G Low Carbon Transition North America GBP Index TR |
.SLCTBNAT |
DE000SL0BN06 |
|
Solactive L&G Low Carbon Transition UK GBP Index NTR |
.SLCTBGBN |
DE000SL0B8T5 |
|
Solactive L&G Low Carbon Transition UK GBP Index PR |
.SLCTBGBP |
DE000SL0B8S7 |
|
Solactive L&G Low Carbon Transition UK GBP Index TR |
.SLCTBGBT |
DE000SL0BNU3 |
|
Solactive L&G Low Carbon Transition Global Index NTR |
.SOLCTGMN |
DE000SL0CB09 |
|
Solactive L&G Low Carbon Transition Global Index PR |
.SOLCTGMP |
DE000SL0B9X5 |
|
Solactive L&G Low Carbon Transition Global Index TR |
.SOLCTGMT |
DE000SL0CB17 |
Rationale for Methodology Change
Solactive has determined that to align the current index guideline to the best market practice in term of ESG requirements, and so as to strengthen the ESG engagement of the index, it is necessary to replace the current exclusion list provided by ISS and based on Controversial Weapons criteria and the maximum of 30% of revenue in coal mining with the Future World Protection List (FWPL) provided by LGIM. The FWPL captures the existing exclusion criteria and broadens it to include the UNGC filter as an additional criteria. Moreover, the methodology change will bring the Affected Indices in line with the other indices administered by Solactive.
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:
From (old version):
Solactive evaluates all companies in the respective Index Universe based on the criteria outlined in the table below. The evaluation is based on data provided by the Data Provider:
|
Theme |
Exclusion criterion |
|
|
Controversial Weapons |
Chemical weapons |
Verified ongoing involvement |
|
Biological weapons |
||
|
Cluster munitions |
||
|
Anti-personnel mines |
||
|
Sector-Based Screening |
Coal |
30% Mining |
|
Explanation: % figures refer to revenue threshold (for degree of involvement) above which criterion is breached |
||
All companies violating any of the exclusion criteria above are excluded.
To (new version):
SOLACTIVE evaluates all companies in the respective INDEX UNIVERSE based on the criteria outlined in the Future World Protection List (the “FWPL”) produced by DATA PROVIDER 1. Any company listed on the FWPL is then excluded. The FWPL is reconstituted on a semiannual basis in March and September. The methodology by reference to which the FWPL is constructed is available here: https://www.lgim.com/landg-assets/lgim/_document-library/capabilities/future-world-protection-list-public-methodology.pdf
Section: 6. DEFINITIONS:
From (old version):
“DATA PROVIDER” is ISS. For more information, please visit: https://www.issgovernance.com/
To (new version):
“DATA PROVIDER 1” is Legal & General Investment Management (“LGIM”). For more information, please visit: https://www.lgim.com/
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.