FTSE Russell and ESG research firm Sustainalytics are working together to develop ESG indexes.James Comtois
FTSE Russell and ESG research firm Sustainalytics are working together to develop ESG indexes.
Through this partnership, investors will have environmental, social and governance-factor versions of the core Russell 1000, 2000 and 3000 family of U.S. indexes, using Sustainalytics’ ESG Risk Ratings tools, said Tony Campos, FTSE Russell director of North America ESG, in a phone interview.
“What we’re seeing with the rising demand for ESG (among investors) is a need for choice and a wide range of preferences across client segments and across different methods for how to approach ESG,” Mr. Campos added.
Sustainalytics President Bob Mann, in a separate phone interview, said “there’s a lack of high-quality ESG benchmarks associated with the standard bearers,” said Mr. Mann. “By coming together, we could provide something that the market really wanted.”
FTSE Russell and Sustainaltyics are jointly developing ESG offerings that will be based on the new indexes. Although they have not yet finalized the design, Mr. Campos said they anticipate the indexes to go live early next year.
“We hope that the first indexes on the U.S. Russell series will serve as the foundation for further expansion of our collaboration into new areas of joint benchmark creation,” Mr. Campos added.