Morningstar, Inc. has launched the Morningstar Transatlantic Sustainable Development Goals Select 40 Index providing exposure to US and developed European companies whose business activities contribute positively to the UN Sustainable Development Goals.
The Morningstar Transatlantic Sustainable Development Goals Select 40 Index, crafted by Morningstar Indexes and leveraging Morningstar Sustainalytics’ ESG data and risk ratings, is an impact-oriented index for the structured products market.
ESG screens and a requirement of at least 25% revenue from sustainalytics impact themes are imposed on index constituents, focusing on human development, climate action, healthy ecosystems, resource security and basic needs.
Citi exclusively licensed this index, shared the firm. Arthur Dorbessan, global head of retail indices, Citi Multi Asset Group, said: “As ESG investment becomes more targeted, it is fundamental to propose more ESG-aligned indices to our clients.”
Constituents are selected based on the highest total impact score using Morningstar Sustainalytics Impact Metrics.
According to Axel Pierron, director of client relations for Morningstar Sustainalytics: “Companies operate in an interconnected socioeconomic context that affects human development through multiple lenses. These kind of collaborative index initiatives are a way forward for investors to meaningfully address basic social needs in global regions where it’s most urgent.”
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