Financial intelligence provider Qontigo announced expanding the STOXX Factor Index suite to include a group of environmental, social and governance (ESG) -screened indices. The STOXX ESG-X Factor Indices offer ESG-screened indices with similar levels of factor exposures as the STOXX Factor Indices, but limiting unintended exposures. The factor exposures are developed from institutionally tested analytics of Axioma Factor Risk Models.
With the new addition, STOXX index portfolio includes ESG-screened versions of over 50 benchmarks that meet the criteria of leading asset owners. The STOXX Factor Index suite includes ESG-X versions of global, regional and emerging markets benchmarks with ESG-X versions of the EURO STOXX 50 and the STOXX Europe 600. The ESG screening procedure is based on independent global provider of ESG data Sustainalytics’ expertise. Companies dealing in controversial products such as weapons, tobacco production and thermal coal, along with companies in breach of the Global Standards Screening principles, are excluded.
