FTSE Russell launches two new index series to support ESG integration into passive investment

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FTSE Russell, the global index, analytics and data provider, announced the expansion of its Sustainable Investment index offering with the launch of the FTSE Global Climate Index Series and the FTSE ESG Index Series. The new index series build on the launch of the award-winning FTSE All-World ex CW Climate Balanced Factor Index, the first FTSE Russell index to combine a smart beta factor approach alongside climate change considerations.

The FTSE Global Climate Index Series uses innovative index methodology to weight index constituents by three climate change measures while maintaining a risk and return profile similar to broad market benchmarks. The transparent, rules-based construction reflects the performance of eligible securities from the FTSE All-World®, FTSE All-Share® and the Russell 1000® Indexes, with constituent green revenues measured by FTSE Russell’s Green Revenues data model.

The FTSE ESG Index Series is designed to help investors align investment and ESG objectives into a broad benchmark, whilst maintaining industry neutrality. Company weights within each index are tilted using FTSE Russell’s ESG Ratings and data model and reflect the performance of eligible securities from the FTSE Developed, FTSE Emerging, FTSE All-Share and Russell 1000 Indexes.

Tony Campos, Director, ESG Product Management, FTSE Russell said:

Coming out of COP23 there is agreement that development and adoption of green technology and services are contributing to an acceleration in the transition to a green economy. We are seeing a clear move towards integrating environmental, social and governance considerations into core benchmarks and passive investments as part of this trend. Responding to demand from clients we are expanding our range of climate change and ESG benchmarking tools to help align sustainability considerations with specific investment objectives.

London Stock Exchange Group is a pioneer in supporting the growing global green and sustainable financing movement, providing a comprehensive green and sustainable product offering.

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