Bloomberg announced the launch of its Screened Choice equity indices, a new suite of customizable benchmarks designed to help investors incorporate environmental, social, and governance (ESG) factors into their investment strategies.
The indices provide a flexible framework for investors to manage portfolios according to their values. Investors can choose from pre-defined modules focusing on common exclusion themes, or create fully customized screens.
Zarina Nasib, Global Head of Sustainable Indices Index Product at Bloomberg Index Services Limited, explained the indices offer both ready-made options and the ability to create tailored solutions. This allows investors to meet various needs, from pre-existing exclusion policies to the creation of fundamental benchmarks.
The six available modules address common ESG concerns. These include exclusions for companies involved in thermal coal production, tobacco, controversial weapons, and those violating UNGC principles. Other modules target fossil fuels, vice products, and companies involved in severe ESG controversies.
At launch, Bloomberg offers 66 ready-made indices based on different combinations of these modules. These range from indices incorporating only a core set of exclusions to those using all six modules.
The indices leverage Bloomberg’s proprietary technology and entity mapping capabilities for accurate and reliable screening. Integration with the Bloomberg Industry Classification System (BICS) further enhances accuracy by providing detailed sector information.
Available in both USD and EUR, the indices provide global coverage across eleven regions. They are designed for benchmarking, asset allocation, and product creation. Bloomberg clients can access the indices through the Bloomberg Terminal.
Bloomberg Index Services Limited (BISL) stated that the indices are built upon a proven track record of creating bespoke indices across various asset classes. The company’s innovative approach aims to meet the evolving needs of market participants. The indices are seamlessly integrated with other Bloomberg solutions, leveraging the company’s extensive data and technology resources.
Bloomberg, a global leader in business and financial information, aims to provide transparency and fairness in markets through trusted data and insights. The company’s technology solutions facilitate better decision-making and collaboration within the global financial ecosystem.
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