Solactive combines ESG, low volatility, and high dividend yield in new index concept
Solactive is pleased to announce the launch of the Climate and Energy Transition Index, an index tracking the performance of companies that show the best commitment to energy transition in their sectors while exhibiting low volatility and high dividend yield characteristics. The index is based on a methodology developed by Natixis in collaboration with Sustainalytics, a leading global provider of Environmental, Social, and Governance (ESG) research and ratings. The index is to be used as the basis for structured products issued by Natixis.
Using the Solactive GBS Developed Markets Large & Mid Cap Index as starting universe, the index first screens out companies involved in the tobacco, weapons, fossil fuels and mining industries. The remaining companies are assigned a Climate Score to reflect their level of involvement in the energy transition and climate issues. Calculated by Sustainalytics, the Climate Score incorporates a product lifecycle approach by evaluating companies both on their carbon footprint resulting from their operations and on the indirect emissions linked to products and services during their lifecycle. It combines quantitative indicators to measure carbon emissions and qualitative indicators to evaluate the extent to which the company contributes to the climate and energy transition through innovative products and services. The best-ranked companies are further screened based on low volatility and high dividend yield.
Timo Pfeiffer, Head of Research at Solactive, commented: “Investors can use the Solactive Climate and Energy Transition Index to gain exposure to companies that are pushing forward the transition to greener economies. Given increased social and environmental awareness, investing in such companies can reduce the risks caused by incompliance and potentially provide a ground for future outperformance.”
Aurélien Rabaey, Head of Equity Derivatives Sales EMEA and Global Head of Equity Derivatives Financial Engineering at Natixis, said: “Natixis is strongly committed to developing innovative investment solutions for retail & institutional investors. This new index provides exposure to the companies that are doing the most to reduce their climate impact and their climate risks exposure. Moreover, its features allow the generation of efficient pricing when applied to structured products.”
Solactive is pleased to announce the launch of the Climate and Energy Transition Index, an index tracking the performance of companies that show the best commitment to energy transition in their sectors while exhibiting low volatility and high dividend yield characteristics. The index is based on a methodology developed by Natixis in collaboration with Sustainalytics, a leading global provider of Environmental, Social, and Governance (ESG) research and ratings. The index is to be used as the basis for structured products issued by Natixis.
Using the Solactive GBS Developed Markets Large & Mid Cap Index as starting universe, the index first screens out companies involved in the tobacco, weapons, fossil fuels and mining industries. The remaining companies are assigned a Climate Score to reflect their level of involvement in the energy transition and climate issues. Calculated by Sustainalytics, the Climate Score incorporates a product lifecycle approach by evaluating companies both on their carbon footprint resulting from their operations and on the indirect emissions linked to products and services during their lifecycle. It combines quantitative indicators to measure carbon emissions and qualitative indicators to evaluate the extent to which the company contributes to the climate and energy transition through innovative products and services. The best-ranked companies are further screened based on low volatility and high dividend yield.
Timo Pfeiffer, Head of Research at Solactive, commented: “Investors can use the Solactive Climate and Energy Transition Index to gain exposure to companies that are pushing forward the transition to greener economies. Given increased social and environmental awareness, investing in such companies can reduce the risks caused by incompliance and potentially provide a ground for future outperformance.”
Aurélien Rabaey, Head of Equity Derivatives Sales EMEA and Global Head of Equity Derivatives Financial Engineering at Natixis, said: “Natixis is strongly committed to developing innovative investment solutions for retail & institutional investors. This new index provides exposure to the companies that are doing the most to reduce their climate impact and their climate risks exposure. Moreover, its features allow the generation of efficient pricing when applied to structured products.”
The index is composed of forty companies listed in Developed Markets. The index is calculated as a price return index and is denominated in EUR. The weighting scheme combines low volatility and high dividend yield features.
For further information, please visit: www.solactive.com
Solactive AG is an innovative index provider that focuses on the development, calculation and distribution of tailor-made indices across all asset classes. As at January 2018, Solactive AG served approximately 400 clients in Europe, America and Asia, with approximately USD 200 billion invested in products linked to indices calculated by the company globally, primarily via 350 exchange-traded funds from a number of well-known providers. Solactive AG was established in 2007 and is headquartered in Frankfurt.
The information in this document does not constitute tax, legal or investment advice and is not intended as a recommendation for buying or selling securities. Solactive AG and all other companies mentioned in this document are not responsible for the consequences of reliance upon any opinion or statement contained herein or for any omission.
Solactive AG, Guiollettstr. 54, 60325 Frankfurt am Main, Germany. Registered Office: Frankfurt am Main, Registration Court: Amtsgericht Frankfurt am Main, HRB: 79986, USt-IdNr.: DE 255 598 976. Management Board: Steffen Scheuble, Christian Grabbe and Christian Vollmuth, Head of Supervisory Board: Dr Felix Mühlhäuser.
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About Groupe BPCE
Groupe BPCE is the second-largest banking group in France. Through its 100,000 staff, the group serves 35 million customers – individuals, professionals, companies, investors and local government bodies – around the world. It operates in the retail banking and insurance fields in France via its two major networks, Banque Populaire and Caisse d’Epargne, along with Banque Palatine and Oney. It also pursues its activities worldwide with the asset & wealth management services provided by Natixis Investment Managers and the wholesale banking expertise of Natixis Corporate & Investment Banking. The Group's financial strength is recognized by four credit rating agencies with the following senior preferred LT ratings: Moody's (A1, stable outlook), Standard & Poor's (A, stable outlook), Fitch (AA-, negative outlook) and R&I (A+, stable outlook).
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