S&P Dow Jones launches two SDG-linked indexes

Investors can track companies’ alignment with specific UN sustainability targets


Laura Miller

S&P Dow Jones has added to its range of sustainability-focused indexes with the launch of two more linked to the UN’s sustainable development goals (SDGs).

The S&P 500 SDG Index and the S&P Global LargeMidCap SDG Index provide diverse exposures to companies that are collectively more aligned with the United Nations’ 17 SDGs.

They use the S&P 500 Index and the S&P Global Large MidCap Index as their underlying parent and reference benchmarks for constituent screening and selection.

For benchmarking against the UN SDG they use data intended to measure the “specific external impact” companies’ products and activities are making on society and the environment, regardless of the financial materiality implications. 

The two indexes do not use data that focuses on assessing the financial materiality of ESG factors for an industry or specific company. 

Jas Duhra, global head of sustainability indices at S&P DJI, said: “S&P Dow Jones Indices is excited to bring to market these two new indices that offer market participants a unique and alternative way of tracking and measuring companies’ alignment with specific UN sustainability targets.”

Adopted by the UN’s member countries in September 2015, the 17 SDGs were established to address the world’s most critical and urgent environmental, social and governance challenges such as climate change; access to affordable and clean energy; industry, innovation and infrastructure; and decent work and economic growth amongst others.

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