Overview
Announcements

Methodology Change | Solactive Equileap Gender Equality Index Family | Effective Date 15/06/2022

Today, on the 07/06/2022, Solactive announces the following changes to the methodology of the following Indices (the ‘Affected Indices’):

NAME

RIC

ISIN

Solactive Equileap Global Gender Equality Price Return Index 

.EQUALP

DE000SLA3KE8

Solactive Equileap Global Gender Equality Net Total Return Index 

.EQUALN

DE000SLA3KF5

Solactive Equileap Global Gender Equality Gross Total Return Index 

.EQUALG

DE000SLA3KG3

Solactive Equileap Europe Gender Equality Price Return Index 

.EQUALEP

DE000SLA3KL3

Solactive Equileap Europe Gender Equality Net Total Return Index 

.EQUALEN

DE000SLA3KM1

Solactive Equileap Europe Gender Equality Gross Total Return Index 

.EQUALEG

DE000SLA3KN9

Solactive Equileap US Gender Equality Price Return Index 

.EQUALUP

DE000SLA3KH1

Solactive Equileap US Gender Equality Net Total Return Index 

.EQUALUN

DE000SLA3KJ7

Solactive Equileap US Gender Equality Gross Total Return Index 

.EQUALUG

DE000SLA3KK5

Rationale for Methodology Change

The Indices provide exposure to companies which have demonstrated a commitment to gender diversity as part of their corporate responsibility strategy. Given the gender equality theme is part of the Governance pillar of the ESG score, which is already strong in the Indices, a slightly stricter controversial activity screening is suggested to strengthen the “E” and “S” pillars of the ESG score. This would make these Indices a better alternative for clients targeting comprehensive ESG products. Based on the feedback for Market Consultation which ended on 2nd June 2022 for this Index family, the proposed screening for Shale Oil and Gas component has been removed, as there were not enough data points available for excluding securities based on available data in this category.

Changes to the Index Guideline

The following Methodology changes are proposed in Section 2.1 of the Index Guideline, “Selection of the Index Components”:

From (old version):

“[…]

The following steps are then applied by Solactive:

  1. All stocks with a 3-month Average Daily Value Traded below USD 5 million are removed.
  2. All securities are then screened for involvement in the certain controversial activities as provided by the ESG Data Provider.
  • Unconventional Fossil Fuels: exclude companies with more than 5% revenue exposure to Coal Mining and Power Generation, Hydraulic Fracturing, Oil & Sands as well as any involvement in Deep Water Drilling.
  • Nuclear Energy: exclude companies with more than 10% of revenues derived from production, distribution or supports of products related to Nuclear Energy.
  • Controversial Businesses: exclude companies with more than 10% revenue exposure to Gambling, Adult Entertainment, Alcoholic Beverages and Tobacco Products or Military Equipment.
  • Controversial Weapons: exclude companies with any exposure to Anti-personnel mines, Biological and Chemical Weapons, Cluster Munitions, Depleted Uranium as well as Nuclear Weapons.
  • Norms Based Research: exclude companies with verified infringement of established international initiatives and guidelines (such as UN Principles and OECD Guidelines).

[…].”

To (new version):

“[…]

The following steps are then applied by Solactive:

  1. All stocks with a 3-month Average Daily Value Traded below USD 5 million are removed.
  2. All securities are then screened for involvement in the certain controversial activities as provided by the ESG Data Provider.
  • Unconventional Fossil Fuels: exclude companies with more than 5% revenue exposure to Coal Mining and Power Generation, Hydraulic Fracturing, Oil & Sands as well as any involvement in Deep Water Drilling or Arctic Oil & Gas Involvement.
    • Additionally exclude companies which are expected to have any involvement in Coal Mining or Coal Power Generation.
  • Nuclear Energy: exclude companies with more than 10% of revenues derived from production, distribution or supports of products related to Nuclear Energy.
  • Controversial Businesses:
    • Exclude companies with more than 10% revenue exposure to Gambling, Adult Entertainment or Alcoholic Beverages.
    • Exclude companies with more than 5% revenue exposure to Tobacco distribution or any involvement in Tobacco production.
    • Exclude companies with more than 5% revenues exposure to Military Services or Equipment.
    • Excluding companies with more than 5% revenue exposure to production and distribution of Civilian Firearms.
  • Controversial Weapons: exclude companies with any exposure to Anti-personnel mines, Biological and Chemical Weapons, Cluster Munitions, Depleted Uranium as well as Nuclear Weapons.
  • Norms Based Research: exclude companies with verified infringement of established international initiatives and guidelines (such as UN Principles and OECD Guidelines).

[…].”

Defined terms used in this announcement, but not defined herein, have the meaning assigned to them in the respective index guideline of the Affected Indices. The amended version of the index guideline will be available on the effective date.