Our best-in-class solutions consider investors’ need to integrate environmental, social and governance metrics alongside the traditional risk-return framework. And, because we understand the need to integrate our clients’ views and sustainability objectives, our curated, open ESG data and partnering architecture offers investors and clients choice and the ability to customize solutions.
“Exclude” strategies – an efficient starting base
This category is a starting point in responsible engagement and risk mitigation, and comprises ESG exclusion and integration strategies. For investors seeking to raise the ESG profile of portfolios but maintain low tracking errors and similar risk-return characteristics to STOXX and DAX benchmarks.
“Enhance” strategies – optimizing sustainable investing
Our ‘Enhance’ category has been designed for investors who wish to maximize their portfolios’ ESG profiles while maintaining benchmark exposure. The category is made up of STOXX and DAX indices that aim to maximize the sustainability profile of portfolios.
Key benefits
Superior design
Accurate and transparent non-financial factors are used to identify material ESG risks and growth opportunities
State-of-the-art index construction
The combination of superior index construction expertise with leading risk model and optimization tools allows for the creation of powerful and creative indices
Transparency and simplicity
We provide a clear and easy-to-explain, rules-based framework to incorporate ESG considerations into investment processes
Liquidity and tradability
Liquidity considerations always play a crucial role in the development and composition of indices
More information
Related news & research
New ISS STOXX whitepaper analyzes cost of portfolio “greening”
Transaction costs play a crucial role for any investor considering adopting sustainable principles in their investments. A new study from ISS LiquidMetrix and STOXX investigates the costs, and cost efficiencies, of shifting a benchmark portfolio of European equities to climate-transition versions.
The Cost of Going Green(er)
Transaction costs play a crucial role for any investor considering adopting sustainable principles in their investments. This study from ISS LiquidMetrix and STOXX investigates the costs, and cost efficiencies, of shifting a benchmark portfolio of European equities to climate-transition versions.
DWS launches biodiversity-focused Xtrackers ETFs integrating comprehensive ISS STOXX impact framework
The ETFs allow investors to consider the risks and opportunities presented by rising biodiversity-related liabilities. The core strategies are based on a multi-step framework designed by ISS ESG and STOXX, which not only applies screens to exclude companies that negatively impact biodiversity but also provides increased exposure to those more aligned with the preservation of the world’s natural capital.
Monthly Index News: October 2023
Stocks fell for a third consecutive month in October on concerns that interest rates will remain higher for longer, and amid an escalating conflict in the Middle East.
New iShares ETF tracking STOXX Global Lithium and Battery Producers index offers investors access to critical energy transition metal
The STOXX Global Lithium and Battery Producers index inaugurates an innovative dual identification process to selecting stocks, involving revenue and patents. As a key component in batteries, lithium is essential to the clean energy transition and the rollout of consumer electronics.
New report examines rationale, methodology of ISS STOXX Biodiversity indices
The publication explores the integration of biodiversity considerations in an investment process at a time of emerging nature-related risks for investors. The authors review what metrics are available to measure companies’ biodiversity impact, and describe in detail the four-step process behind the ISS STOXX Biodiversity indices and its results at a portfolio level.
ISS STOXX® Biodiversity Indices: How to Incorporate Biodiversity Considerations in Index Construction
Biodiversity is vital for our planet and society. With the emergence of the Kunming-Montreal Global Biodiversity Framework, investors are gaining a better understanding of biodiversity-linked risks and opportunities in their portfolios. This paper begins by exploring the current metrics available for assessing the biodiversity footprints of companies. It then describes the ISS STOXX framework for building biodiversity indices, based on three fundamental steps: “Avoid,” “Minimize,” and “Enable.”
TNFD recommendations set path for nature-related disclosure standards, supporting biodiversity action
The international body’s framework is a step forward in the adoption of nature-focused metrics. It can help companies address biodiversity issues and guide investors in the construction of portfolios. We compare the TNFD’s recommended process to that of the ISS STOXX® Biodiversity indices.