Solactive Launches Solactive Future Energy ESG Index Offering Exposure to Securities That Provide Renewable Energy or Contribute to Its Value Chain
Achieving net zero emissions is among the most pressing matters in our times. Impending renewable energy policy deadlines are likely to push this topic even further, driving motivation amongst investors to join the trend for ESG investment strategies. Solactive is now pleased to announce the launch of the Solactive Future Energy ESG Index. The product offers exposure to securities that provide renewable energy or contribute to its value chain.
The index constituents are companies active in the following industries: solar energy, wind energy, geothermal energy, battery & energy storage, hydrogen power, and smart energy & alternative power. After the screening, companies are excluded based on the ESG criteria detailed in the guideline, such as failure to respect established norms or very severe controversies in human rights, and verified ongoing involvement in controversial weapons research. This index is licensed among others by the German Asset Manager Deka Investment.
The selection of the Solactive Future Energy ESG Index constituents is based on Solactive’s proprietary Natural Language Processing Engine ARTIS®. ARTIS® utilizes advanced algorithms to parse high volumes of public documents evaluating companies’ exposure to various themes or topics. The sophisticated procedure not only detects potential index constituents considering a firm’s exposure to a theme but also ranks its importance to the very subject or industry.
Timo Pfeiffer, Chief Markets Officer of Solactive, comments: “Our society is increasingly concerned about climate change and environment protection, with more people across the world willing to make sacrifices to address it. Energy consumption and production play one of the most important roles in it as it is present in every activity of our daily lives. Therefore, the desire for clean energy sources has never been stronger. We are excited to be able to provide investors with the opportunity to invest in the climate change combat and make their part for a greener planet.”