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New partnership unveils equity, bond ESG indices

New partnership unveils equity, bond ESG indices

Index provider Solactive has released the Solactive L&G ESG Index Family targeted at investors who wish to go further in integrating environmental, social and governance (ESG) factors into their portfolios.

This launch, Solactive said, is the result of collaboration between the firm and Legal & General Investment Management (LGIM), which combines LGIM’s proprietary ESG scoring system– with Solactive’s multi-asset expertise in the development of innovative indices. 

With this new launch, Solactive will expand its range of ESG indices offering exposure to developed equity markets in the Asia-Pacific, Europe, Japan, North America, and the UK.

On the fixed income side, the new indices provide coverage of the investment grade corporate bond market denominated in EUR, USD and GBP, it added.

The indices exclude companies operating in controversial industries, such as weapons, coal mining, and those that are perennial violators of the United Nations Global Compact Principles.

Commenting on the announcement, Timo Pfeiffer, head of research at Solactive said: ‘With increasing focus from investors and regulators alike , sustainability is becoming the rule, rather than the exception.

‘The Solactive L&G ESG Index Family is used as the basis for funds launched by LGIM. The equity indices are available in three different versions: price return, total return and net total return.’

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