Methodology Change | Solactive USS Developed Markets Ethically Screened Climate Transition Benchmark | Effective Date 2024-10-09
Today, on 2024-09-24, Solactive announces the following changes to the methodology of the following indices (the ‘Affected Indices’):
| ISIN | RIC | Name |
| DE000SL0JC84 | .SUESCTBN | Solactive USS Developed Markets Ethically Screened CTB Index NTR |
| DE000SL0JC76 | .SUESCTBP | Solactive USS Developed Markets Ethically Screened CTB Index PR |
| DE000SL0JC92 | .SUESCTBT | Solactive USS Developed Markets Ethically Screened CTB Index TR |
Summary of the Change
The changes can be summarized as follows:
- Removal of the SDG-based ESG exclusions(Environmental Objectives) .
- Addition of white phosphorus weapons criterion to the Controversial Weapons ESG Category
- Amendment of the Russian exclusion to include Russia as Country of Risk.
- The name of the index will be adjusted from Solactive USS Developed Markets Climate Transition Benchmark to Solactive USS Developed Markets Ethically Screened Climate Tilted Index
Changes to the Index Guideline
Section 2.2. of the NEW Methodology:
- Securities with the GBS Country Classification Poland are excluded from the selection.
- Securities with the GBS Country Classification,Country of Primary listing,Country of Incorporation or Country of Risk as Russia are excluded from selection.
- All remaining companies in the respective Index Universe are evaluated based on the criteria outlined in the table below. The evaluation is based on data provided by the Data Provider:
|
Theme |
Topic |
Exclusion criterion |
|
Norm-Based Research |
Environment |
Verified failure to respect established norms as well as severe or very severe controversies |
|
Human Rights |
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Corruption |
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Labour Rights |
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Controversial Weapons Research |
Chemical weapons |
Verified or alleged ongoing involvement |
|
Biological weapons |
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Nuclear weapons |
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Depleted Uranium |
||
|
Nuclear weapons outside the NPT |
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|
Cluster munitions |
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|
Anti-personnel mines White Phosphorus weapons |
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|
Activity-Based Screening |
Tobacco |
>0% cultivation & production <OR> >5% distribution <OR> >10% Services |
|
Fossil Fuels |
>0% total revenues (this includes any revenues from deep water drilling, artic drilling, oil sands, hydraulic fracturing, fossil fuel production, services and distribution, oil refining and processing or coal mining) <OR> Any involvement in coal mining expansions <OR> >0 potential emissions from coal reserves |
|
|
Nuclear Energy |
>0% production <OR> >3% services <OR> >0% Uranium mining |
|
|
Gambling |
>10% total revenues <OR> >50% production |
|
|
Pornography |
>0% production <OR> >0% distribution |
|
|
Military Equipment and Services |
>0% total revenues |
|
|
Biodiversity |
Any negative effect on biodiversity-sensitive areas |
|
|
Palm Oil |
>10% total revenues for producers without RSPO certificate |
|
|
Animal Welfare and Testing |
Any non-pharmaceutical involvement |
Section 6 of the OLD Methodology:
“Rebalance Day” is the close of the first Wednesday in February and August. If that day is not an Eligible Rebalance Day, the Rebalance Day will be the following Eligible Rebalance Day.
Section 6 of the NEW Methodology:
“Rebalance Day” is the close of the first Wednesday in May and November. If that day is not an Eligible Rebalance Day, the Rebalance Day will be the following Eligible Rebalance Day.