Methodology change | Solactive Sustainable Goals Europe MV Index | Effective Date 7th April 2025

Rationale for Methodology Change

The current ESG data provider has decommissioned its services. As a result, Solactive has modified the methodology to ensure the index’s continuation while maintaining the integrity of ESG assessments and alignment with the index strategy.

Changes to the Index Guideline

The following Methodology changes will be implemented in the following points of the Index Guideline (ordered in accordance with the numbering of the affected sections):

Section 6. Definitions:
Addition:
“Data Provider 1” is MINERVA
“Data Provider 2” is ISS
Section 6. Definitions:

From: 

“Selection Pool” is determined on an quarterly basis on the Selection Day in January, April, July and October. It includes those companies that are part of the Universe provided by VIGEO EIRIS on a quarterly basis. The securities for the Universe are selected with respect to following ESG criteria :

1. Vigeo Eiris ESG score within the top three quartiles of all eligible European companies.
2. No controversies with critical severity
3. Not listed on the Vigeo Eiris Controversy Warning List
4. If the company is within the top 10 carbon emitters of its sector and has a Vigeo Eiris Carbon Footprint classification of D, then the Vigeo Eiris Energy Transition score must be greater than or equal to 50/100
5. Significant or Major involvement in Vigeo Eiris Sustainable Goods & Services (Access to Information, Capacity Building, Energy & Climate Change, Food & Nutrition, Health, Infrastructure, Responsible Finance, and Water & Sanitation)

OR

Score equal to or above 60/100 and ranked first among sector peers in the themes of Societal Development, Fair Work, Business Ethics, Corporate Governance, or Natural Resources. When themes are inter-related, the company must also be ranked in the top 10 sector peers on the second theme.

6. No major involvement in Alcohol, Armament, Gambling, Nuclear, Sex Industry or Tobacco

To: 

“Selection Pool” is determined on an quarterly basis on the Selection Day in January, April, July and October. It includes those companies that are part of the Universe. The securities for the Universe are selected with respect to following ESG criteria :

1. ESG score of Data Provider 2 within the top three quartiles of all eligible European companies.
2. No controversies with critical severity according to Data Provider 1.
3. No UNGC breaches according to Data Provider 1.
4. If the company is within the top 10 carbon emitters of its sector and has a Carbon Score of D, provided by Data Provider 1, then the Carbon Risk Rating of Data Provider 2 must be greater than or equal to 50/100.
5. The SDG Impact Rating from Data Provider 2 for the following goals is equal to or greater than 0: Peace, Justice and Strong Institutions,Quality Education,Affordable and Clean Energy,Clean Water and Sanitation,Climate Action,Good Health and Well-Being,Industry, Innovation and Infrastructure, Zero Hunger,Reduced Inequalities.

 OR

ESG Score equal to or above 60/100 and ranked first among sector peers in the themes of Societal Development, Fair Work, Business Ethics, Corporate Governance, or Natural Resources. When themes are inter-related, the company must also be ranked in the top 10 sector peers on the second theme.