Step 1: Exclude companies involved in thermal coal, tobacco and controversial weapons, as well as companies with low UNGC Scores, in addition to the bottom 25% of companies within global GICS industry groups, as ranked by S&P DJI ESG Scores.
Step 2: Rank companies by S&P DJI ESG Score. Select top-ranked constituents, targeting 75% of the market cap in each S&P/ASX 200 GICS industry group, with the goal of achieving broadly sector-neutral exposure relative to the S&P/ASX 200.
Step 3: Weight companies by float-adjusted market capitalization.
S&P DJI ESG Scores are unique in that they focus on the most financially material and relevant ESG signals within specific industries. The scores leverage industry-acclaimed assessment data from renowned ESG data specialist, SAM, part of S&P Global.
more exposure to companies that integrate climate change risks and opportunities into their risk management programs.
more exposure to companies that publicly report their total direct carbon emissions, energy consumption, waste disposed, and water consumption.
more exposure to companies that are committed to improving their climate-related performance with science-based targets.
more exposure to companies monitoring and disclosing the breakdown of workforce based on minority groups.
more exposure to companies assessing human rights issues across their business.
more exposure to companies that externally verify their lost-time injury frequency rate for employees.
more exposure to companies that analyze and address material ESG issues as sources of long-term value creation.
more exposure to companies where the board is headed by a non-executive and independent chairperson.
more exposure to companies with a public Supplier Code of Conduct that covers working conditions, child labor, and environmental production standards.