FTSE ESG Risk-Adjusted Index Series

The FTSE ESG Risk-Adjusted Index Series is designed to reflect the performance of benchmark indices, whilst improving broad ESG characteristics and maintaining similar risk/return characteristics to the underlying universe.

The FTSE ESG Risk-Adjusted Index Series family is designed to reflect the performance of benchmark indices with specific ESG risk adjustments compared to the underlying benchmark. This is achieved by taking into account ESG and climate data sets and excluding companies involved in specific activities.

The FTSE ESG Risk-Adjusted Index Series included the following indices:

  • FTSE 100 ESG Risk-Adjusted Index
  • FTSE 250 ESG Risk-Adjusted Index
  • FTSE 350 ESG Risk-Adjusted Index
  • FTSE All-Share ESG Risk-Adjusted Index
  • FTSE MIB ESG Risk-Adjusted Index
  • Russell 1000 ESG Risk-Adjusted Index

The indices are constructed to adjust for carbon risks and ESG performance. The indices target a reduction in fossil fuel reserve exposure, reduction in operational carbon emissions intensity and ESG score improvement on the index level at semi-annual rebalances, relative to the underlying Index.

The index excludes companies involved with controversial product activities, including controversial weapons, tobacco, thermal coal (extraction and energy generation), oil sands, shale energy and arctic exploration, and companies involved with controversial conduct related to the UN Global Compact Principles.

The indices can be used as performance benchmarks, or as the basis for index-linked products including index tracking funds, derivatives and Exchange Traded Funds (ETFs).

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Why ESG Risk-Adjusted indices?

Investors are seeking the ability to incorporate sustainable investment considerations within a broad market portfolio without significantly impacting the risk and return characteristics of that industry standard benchmark.

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Flagship benchmarks

Based on the well-known FTSE Benchmarks: FTSE 100, FTSE 250, FTSE 350, FTSE All-Share®, and FTSE MIB capturing the investable market capitalisation.

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ESG Scores

The ESG Risk-Adjusted indices incorporate broad ESG and carbon risks by targeting specific improvements and reductions versus the benchmark. 

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Target Exposure

Target Exposure methodology ensures the index remains investible, managing risk/return characteristics vs the benchmark.

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FTSE UK ESG risk-adjusted index series

Discover how the FTSE UK ESG Risk-adjusted Index Series helps investors integrate broad ESG considerations into portfolios without considerably altering the risk return profiles associated with its benchmark.

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