Morningstar Introduces SDG-focused Index for Structured Products

 Global index provider Morningstar Indexes has launched the Morningstar Transatlantic Sustainable Development Goals Select 40 Index. The new index offers investors exposure to US and developed European companies with business activities that “contribute positively” to the UN Sustainable Development Goals. Index constituents must pass ESG screens and derive at least 25% of their revenue from one or more of the Sustainalytics Impact themes; human development, climate action, healthy ecosystems, resource security and basic needs. Constituents are selected based on the highest total impact score as measured by Morningstar Sustainalytics Impact Metrics. The index is one of the first impact-oriented indexes designed for the structured products market and has been exclusively licensed by Citi for a new mandate. Axel Pierron, Director of Client Relations at Morningstar Sustainalytics, said: “We are proud to support an index for investors focused on the societal impacts of their portfolios. Companies operate in an interconnected socio-economic context that affects human development through multiple lenses. These kind of collaborative index initiatives are a way forward for investors to meaningfully address basic social needs in global regions where it’s most urgent.” 

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