ISS ESG, the responsible investment arm of Institutional Shareholder Services Inc., today announced the expansion of the Solactive ISS ESG Screened Corporate Bond Index Series, a rules-based, market value-weighted investable index family engineered to mirror the performance of the USD- and EUR-denominated corporate bond markets, with the inclusion of eligible issuers operating in accordance with market standards on ESG controversy screens. Indices are available for both the investment grade and high yield corporate bond markets.
Potential constituents are drawn from the Solactive IG and HY Corporate benchmark families on each monthly selection date and must pass issuer-focused screening powered by ISS ESG data. The Screened Series applies ISS ESG’s most frequently requested ESG filters, including identification of verified failures to respect established norms such as the U.N. Global Compact, verified involvement in controversial weapons, and involvement at specified revenue thresholds in certain controversial activities such as fossil fuels, military contracting, tobacco and gambling, among others.
The Solactive ISS ESG Screened USD and EUR Corporate Bond Index Series provides investors with access to investment grade and high yield corporate bonds and is the latest fixed income addition to the family of ESG indices launched by Solactive in collaboration with ISS ESG. “Building on the demonstrated success of the Screened equity indices navigating through the Pandemic, we are pleased to now allow for the application of the same robust ESG methodology to the largest segments of the corporate bond market,” said Hernando Cortina, Head of Index Strategy at ISS ESG.
“We are delighted to announce the launch of the Solactive ISS ESG Screened Corporate Bond Index Series to augment our ISS ESG Index Solutions and complement our existing suite of ISS ESG Fixed Income Solutions” said Marija Kramer, Head of ISS ESG. “Our suite of ISS ESG Index Solutions offers investors a choice of thematic and benchmark indices from global index providers building on ISS’ unique and proprietary data to track their portfolio’s performance and create index-linked investment products.”
In addition, investors can leverage ISS ESG’s Custom Index Solutions to promote unique ESG strategies with broad ESG insight and the ability, working with an index provider of their choice, to create exclusive, tailor-made indices to best meet individual investors’ demands and objectives. Indices using Custom Index Solutions can be set up thematically or according to a wide set of client-specific ESG requirements.
By Sarah Ball, Executive Director; ISS Communications