Business and financial markets information service provider Bloomberg announced today the launch of the Bloomberg Screened Choice Indices, a new suite of equity benchmarks designed to enable investors to integrate their own choice of sustainability exclusions into their portfolios.
According to Bloomberg, the new index suite uses a modular methodology that bundles exclusions into the six most common exclusion themes, with investors able to individually select or combine modules, or to use the modules as an overlay in combination with other Bloomberg equity index strategies.
The six modules include a “Core” module which sets baseline criteria for sustainable investment products, and excludes companies active in thermal coal production, tobacco production and controversial weapons, as well as companies deemed non-compliant with UNGC Principles, as well as more focused exclusions including “Fossil Fuels and Non-Renewable Energy”; a broader “Fossil Fuels Enhanced”; “Vice Products,” which excludes companies involved in adult entertainment, alcohol, gambling, and tobacco; “Weapons,” and; “Controversial Conduct,” excluding companies that have been flagged as violating UNGC Principles or involved in severe ESG controversies.
In addition to enabling customized benchmarks, Bloomberg said that it is launching the new suite with 66 off-the-shelf indices based on module configurations including Bloomberg Select Indices, which includes a Core module configuration, Bloomberg Select FossilEX Indices, which include the Core, Fossil Fuels and Non-Renewable Energy modules, and Bloomberg Screened Choice Indices, which include all six modules.
Zarina Nasib, Global Head of Sustainable Indices Index Product at Bloomberg Index Services Limited, said:
“The launch of Screened Choice Indices demonstrates Bloomberg Indices’ ongoing investment into expanding our equities offering and providing transparent and customizable sustainable investment solutions. Whether clients have explicit exclusion policies requiring custom solutions or are seeking a foundational benchmark off-the-shelf, this index family offers a flexible framework to meet their needs.”
