The index includes companies with a significantly higher alignment to selected United Nations’ SDGs, than the market-cap weighted parent benchmark
June 1, 2023, Eindhoven, Zug, Amsterdam — Philips Pensioenfonds, in collaboration with index and analytics provider Qontigo and asset manager BlackRock, has successfully aligned its € 370 million emerging markets equity portfolio with several Sustainable Development Goals (SDGs). The mandate, managed by BlackRock, tracks a custom equity benchmark, the iSTOXX® PPF Responsible SDG Emerging Markets Index.
Using Qontigo’s proprietary optimization process, the index improves the targeting of SDG exposure, by overweighting those Emerging Market securities which positively contribute to the achievement of four SDGs: good health and well-being (3), sustainable cities and communities (11), responsible consumption & production (12) and climate action (13). The equity portfolio represents roughly 2% of the total assets of the pension fund.
“In a survey, our participants showed broad support for the integration of SDGs in the wider investment portfolio. In partnership with BlackRock and Qontigo, we developed a solution for the developed markets equity portfolio that was implemented in December 2021. More recently we successfully extended this to our emerging markets equity portfolio.”Anita Joosten, Chief Investment Officer of Philips Pensioenfonds
“This implementation for Philips Pensioenfonds is an example of how BlackRock can support clients with customised investment solutions that integrate sophisticated sustainable investment goals.”Wilbert Huizing, Director Institutional Client Business, BlackRock Netherlands
“Thanks to our unique combination of data insights, optimization, and index construction, our clients can meet their responsible investment objectives in markets where it was historically less feasible.”
“We are excited about the strong partnership we have created with Philips Pensioenfonds and BlackRock, and to have jointly designed an innovative solution that integrates multiple sustainability considerations.”Axel Lomholt, Chief Product Officer for Indices & Benchmarks at Qontigo
The methodology of the iSTOXX PPF Responsible SDG Emerging Market Index increases exposure to companies with a positive effect on the four selected SDGs. The exposure to companies that contribute with at least 10% of their revenues to these SDGs, will increase by a minimum of 5%-points in the index, which is about double their standard benchmark weighting. In addition, the methodology excludes companies which are obstructive to these SDGs, while also targeting a carbon intensity reduction of 30% compared to its benchmark. The selection process incorporates data from ISS ESG, the sustainable investment arm of Institutional Shareholder Services (ISS), and from the Sustainable Development Investments Asset Owner Platform (SDI AOP).
Note for editors
1. In December 2021, Philips Pensioenfonds, in collaboration with Qontigo and BlackRock, had announced the launch of the iSTOXX® PPF Responsible SDG Index, which serves as a benchmark for its developed market equities portfolio.
2. More information on the methodology applied can be found in the iSTOXX Methodology Guide (https://www.stoxx.com/document/Indices/Common/Indexguide/istoxx_index_guide.pdf) on page 765.
About Philips Pensioenfonds
Philips Pensioenfonds is the administrator of the pension plans for current and former employees of its associated companies (Koninklijke Philips N.V., Signify and Versuni) in the Netherlands. This involves administering pension rights and entitlements and investing and managing the pension fund’s assets. With Assets under Management of about EUR 17 billion, Philips Pensioenfonds is one of the main corporate plans in the Netherlands.
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Qontigo is a leading global provider of innovative index, analytics and risk solutions that optimize investment impact. As the shift toward sustainable investing accelerates, Qontigo enables its clients—financial-products issuers, asset owners and asset managers—to deliver sophisticated and targeted solutions at scale to meet the increasingly demanding and unique sustainability goals of investors worldwide.
Qontigo’s solutions are enhanced by both our collaborative, customer-centric culture, which allows us to create tailored solutions for our clients, and our open architecture and modern technology that efficiently integrate with our clients’ processes.
Part of Deutsche Börse Group, Qontigo was created in 2019 through the combination of Axioma, DAX and STOXX. Headquartered in Eschborn, Germany, Qontigo’s global presence includes offices in New York, London, Zug and Hong Kong. www.qontigo.com
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