New Environment, Social, and Governance Index on the TSX

By Andrew Rickard | June 20 2014 02:12PM

On June 16th, S&P Dow Jones Indices and the Toronto Stock Exchange (TSX) announced the launch of the S&P/TSX 60 ESG (Environment, Social and Governance) Index. The index is designed to track the performance of companies in the S&P/TSX 60, Canada's leading equity benchmark, while taking into account each company's sustainability performance relative to the corresponding industry-specific standards. RobecoSAM, an investment specialist focused on sustainable investing, will evaluate companies' sustainability profiles using their proprietary assessment methodology.

The index was designed for investors who currently use the S&P/TSX 60 and wish to apply sustainability criteria. While construction methodology is based on the S&P/TSX 60, the companies' are evaluated using RobecoSAM’s criteria. Companies are then re-weighted according to their sustainability score, meaning those with a higher score are weighted higher in the S&P/TSX 60 ESG index than on the S&P/TSX 60.

"This index provides investors in the Canadian equity market with an objective, investible benchmark against which they can measure their sustainability investment portfolios," comments Alka Banerjee, managing director of global equity indices at S&P Dow Jones Indices.