NEW YORK, September 24, 2020: S&P Dow Jones Indices (“S&P DJI”), the world’s leading index provider, today announced the launch of Sustainability Screened versions of its widely tracked core U.S. equity indices. The new series includes the S&P 500 Sustainability Screened Index, the S&P MidCap 400 Sustainability Screened Index, and the S&P SmallCap 600 Sustainability Screened Index.
These Sustainability Screened Indices measure the performance of stocks involved in business activities that avoid controversies and are aligned with ESG investors’ values in their respective parent indices. This series is the latest evolution of ESG index innovation as U.S. and global investors further align their sustainability goals with more mainstream investments.
“S&P Dow Jones Indices is proud to be at the forefront of cutting-edge ESG indexing and benchmarking. As a pioneer in this space for more than two decades, we create independent, transparent and trusted ESG indices that enable investors to support more sustainable economies,” said Dan Draper, CEO of S&P Dow Jones Indices.
The Sustainability Screened Indices utilize various filters in their eligibility criteria. For example, the indices exclude companies with specific fossil fuel reserves as measured by Trucost, part of S&P Global. Other companies screened out include those involved in thermal coal extraction and power generation, oil sands extraction, and energy exploration and production. In addition, the indices exclude companies that are involved in controversial weapons, small arms, and tobacco.
As part of this index series debut, BlackRock’s iShares has selected and licensed S&P DJI’s Sustainability Screened Indices to deliver sustainable investing alternatives for its exchange-traded funds in the U.S.
“We are excited to launch iShares ETFs with these newly created sustainability screened versions of S&P’s flagship indices. These flagship indices are core portfolio building blocks and the new screened versions will provide more choices for sustainable investing. We welcome adding a new suite with S&P’s global brand and ESG capabilities to iShares sustainable platform,” said Carolyn Weinberg, iShares Global Head of Product at BlackRock.
“Since the successful global launch of S&P DJI’s core ESG index series in 2019, we continue to see growing investor appetite for tailored ESG versions of our most popular market-cap weighted indices using more targeted screening approaches. This new index series enables investors to gain a broad exposure to the U.S. stock market while staying consistent with their sustainability values and goals,” said Reid Steadman, Global Head of ESG Indices at S&P Dow Jones Indices.
The research and methodology on the Sustainability Screened Indices are available at www.spglobal.com/spdji.