ESG Investor’s weekly round-up of news on technology and tools in the sustainable investing sector.
Citi has launched a new equity benchmark index family. The Citi ESG World Indices use ESG ratings provided by ESG data and analytics company Arabesque, implementing negative screening methodologies to reduce exposure to ESG risks. The indices will embed a quantitative analysis of ESG considerations, in order to work with clients to support their ESG objectives. “The Citi ESG World Index family represents exposure to a theme which is at the forefront of many investors’ minds. In addition to showcasing Citi’s strong index construction capabilities, these indices also highlight our ability to collaborate with market leading platforms, such as Arabesque, to support our aim of delivering best-in-class solutions to investors,” said Michelle Cancelli, Global Head of Citi Investment Strategies Trading and Structuring.
S&P Dow jones Indices (DJI) has announced the debut of the S&P MidCap 400 ESG Index and the S&P SmallCap 600 ESG Index, joining the existing S&P DJI’s Global ESG Index family. “Since the launch of the S&P 500 ESG Index nearly two years ago, sustainability has become a top focus of not only investors but corporations as well. Our launch of mid-cap and small-cap ESG indices reflects that it’s no longer just the largest companies recognising the need to better position themselves globally through sustainable business practices,” said Reid Steadman, Managing Director and Global Head of ESG Indices at S&P DJI.
Goldman Sachs has joined the Linux Foundation initiative on Open Source Climate Data (OS-Climate), a cross-industry coalition seeking to shift global investment toward net-zero carbon emissions by developing comprehensive data sets and evaluation tools. Allianz, Amazon, Federated Hermes, Microsoft are also members of OS-Climate. “The world needs comprehensive data to meaningfully address climate change, and this diverse coalition is attacking a key shortcoming of so many efforts to make progress,” said David Solomon, CEO of Goldman Sachs Group.
Technology provider firm Broadridge Financial Solutions has partnered with sustainable investment research and advisory organisation Third Economy to launch the ESG Advisory Service. This new service will leverage proprietary data to help asset managers and corporate issuers improve their sustainability strategies. “Companies are making corporate responsible initiatives part of their business strategy as more retail and institutional investors raise ESG concerns and seek long-term performance and advantages and benefits of ESG-focused businesses,” said Dorothy Flynn, President of Corporate Issuer Solutions at Broadridge.
Nomura Securities, a subsidiary of Nomura Holdings, and FTSE Russell has announced the launch of a new index series, the FTSE Nomura Climate CaRD (Carry and Roll Down) World Government Bond Index. Benchmarking the FTSE Climate Risk-Adjusted World Government Bond Index (WGBI), the new index invests in government bond portfolios that offer the highest carry and roll down. The index has been designed to mitigate against climate risk.