S&P Dow Jones Indices, RobecoSAM and Toronto Stock Exchange (TSX) have launched the S&P/TSX 60 ESG (Environment, Social and Governance) index.
The Index is designed to track the performance of the constituent companies of 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, the investment specialist focused exclusively on sustainability investing, evaluates companies’ sustainability profiles using their proprietary assessment methodology.
The S&P/TSX 60 ESG index is designed for market participants who currently use the S&P/TSX 60 and are looking to deepen the scope of their stock analysis to include sustainability criteria.
The construction methodology is based on the S&P/TSX 60, while companies’ sustainability profiles are evaluated using the RobecoSAM Corporate Sustainability Assessment (CSA).
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 in the S&P/TSX 60.