Results & Analysis from Nasdaq CRD Global Sustainability Index - Semi Annual Performance Review
The Analyst Desk
Jun. 13, 2018
New York, June 13, 2018 (GLOBE NEWSWIRE) -- The Nasdaq, CRD Analytics, a leading provider of independent sustainability investment analytics and The Analyst Desk, creating sustainable returns for global stock exchanges, corporations and investors, announced the results and key industry takeaways from the May 2018 semi-annual Performance Review of the Nasdaq CRD Global Sustainability Index.
The Nasdaq CRD Global Sustainability Index is one of the leading Sustainability Indexes focused on Smart Alpha, which measures the performance of 400 public companies executing a business strategy for Shared Value focused on long-term value creation, financial returns, environmental performance and positive societal impact.
Launched in 2009, the Index employs a transparent, rules-based methodology powered by the SmartViewTM 360 analytics platform, which integrates ESG Indicators that align with the Global Report Initiative G4 sustainability reporting guidelines, the UN Sustainable Development Goals (SDGs) and Leading Indicators which measure growth, efficiency and risk management.
As a result of the May 2018 Performance Review, the Index was reconstituted, with a removal and addition of nine companies/securities. The following securities were removed and/or added based on performance:
-- May 2018 Index Removals:Alk-Abello-B-Rexel, Arrow Electronics, Ericsson-B Rg, Fluor CP, Jabil Inc., Nampak Rg, Norwegian Air Sh Rg, Rexel, and Veolia Environnment S.A.
-- May 2018 Index Additions: Alliant Energy CP, American Electric Power, CLP Holdings Rg, Con Edison Inc., IdaCorp Inc. Holdings Co., Micron Technology, PepsiCo Inc., Pinnacle West Cap., and Seagate Tech Ord Shs.
Michael Muyot, President of CRD Analytics and Co-Founder of The Analyst Desk“We are in the midst of a major paradigm shift toward a low carbon future. The innovating business leaders are benefiting three-fold for their boldness; first they were forced to be more efficient which is translating into better profits margins, second, they are getting more investments from global banks and firms looking to reduce their long-term risk and third their brand is attracting top-notch talent in a highly competitive market for 21st Century workers.”
In a recent report, a multi-stakeholder engagement of investors representing $12 Trillion analyzed 59 leading banks on their transition toward to a low carbon future. The report was produced by Boston Common Asset Management, here are some key findings that are helping catalyze business strategy and operations:
-- 95% of banks engaged with provided some disclosure on low-carbon products and services. -- $12 trillion of investment is needed by 2030 in renewable power generation alone to limit global warming to 2ºC. -- Green bond issuance is predicted to reach $250 billion in 2018, according to Moody’s. -- Banks that ﬁnance the transition to a low carbon economy stand to beneﬁt across all business functions.
For more information:REPORT: Banking on a Low-Carbon Future, http://news.bostoncommonasset.com/banking-on-a-low-carbon-future/ Task Force on Climate-related Financial Disclosures, https://www.fsb-tcfd.org/
Trends and Takeaways from the May 2018 Semi-Annual Performance ReviewAnalysis of the 2018 May Performance Review provides some key insights into the sustainable business practices of the world’s top performing companies and trends in the investor community.
-- Continuous Improvement Across all Sectors–The Index is a dynamic Index, representing the continuous improvement of the listed company securities across all ESG Indicators, while delivering a solid market cap to revenue ratio; a good sign of inline valuation with performance results.
-- Top Industry Added – Utilities –representing 6 of the 9 companies added into the Index in May 2018. Utility companies are Innovating for a Clean Energy Future. The leaders are discovering the benefits of bending the emissions curve downward while building capacity and embracing the digitation of their grid. This is leading to more sustainable efficiencies and profit margins.
-- Top 2 Industries Removed – Industrials and Technology –representing 6 companies of the 9 removed from the Index in May 2018. The Technology sector is dynamic and under extreme pressure to continuously produce extraordinary and perhaps unsustainable quarterly returns. The Industrials sector is fragmented in its adoption of efficiencies and productivity gains. Companies that were removed failed to demonstrate maturity in adopting sustainable business practices that drive business-returns and stakeholder impacts for society and the environment.
-- Most Challenging ESG Indicators to Adopt – Impact of Infrastructure Investments: Which asks for reporting on the extent of development of significant infrastructure investments and services supported, including: o Current or expected impacts on communities and local economies o Positive and negative impacts where relevant o Classification of investments by type, e.g., if services are commercial, in-kind, or pro bono engagements
-- Indicator Outcome Lens: This is an additional opportunity for the company to provide details on how they will continue to create Shared Value (both business value and social value). o This gives insights into the long-term capacity building within local communities. The response should demonstrate how a company is making strategic investments in infrastructure that will benefit the local economy, specific industries and/or incentivize businesses to relocate or expand in these communities. o The analysis should include both positive and negative impacts; covering local economic development, the health and well-being of local citizens, and many of the other core issues in the UN SDGs such as poverty, hunger, education, reduced inequalities, sustainable cities & communities, etc.
The Nasdaq CRD Global Sustainability Index is evaluated on a semi-annual basis in May and November in context of more than 4,000 companies for a listing composite of 400 securities recognized as leaders in ESG and Financial performance. For more information about the Index, including detailed eligibility criteria, visit https://indexes.nasdaqomx.com/Index/Overview/NQCRD.
About Nasdaq Global IndexesNasdaq Global Indexes has been creating innovative, market-leading, transparent indexes since 1971. Today, our index offering spans geographies and asset classes and includes diverse families such as the Dividend Achievers, Global, Nordic, Green Economy, Sharia and Commodity Indexes. We continuously offer new opportunities for financial product sponsors across a wide-spectrum of investable products and for asset managers to measure risk and performance. Nasdaq Global Indexes also provides custom index services and design solutions to selected financial organizations. For more information about Nasdaq Global Indexes, visit indexes.nasdaqomx.com.Daily index values, weightings and historical data for Nasdaq indexes are available via Nasdaq Global Index Watch and Nasdaq Global Index Data Service.
About CRD Analytics CRD Analytics is a leading provider of independent sustainability investment analytics. Using its proprietary SmartView® 360 Platform, CRD Analytics empowers its clients with actionable and performance-driven information distilled from large sets of complex data including financial, environmental, social, governance, and reputational risk. CRD Analytics partners with its clients to construct proprietary index-based products – Exchange-Traded Funds (ETFs), separately-managed accounts, mutual funds and Unit Investment Trusts (UITs). For more information, go to www.crdanalytics.com
About The Analyst Desk The Analyst DeskSM creates sustainable returns for global stock exchanges, corporations and investors, providing ESG Intelligence, Analytics and Advisory to measure, manage and communicate Impact, ROI and Shared Value. For more information, go to www.AnalystDesk.com.
The information contained above is provided for informational and educational purposes only, and nothing contained herein should be construed as investment advice, either on behalf of a particular financial product or an overall investment strategy. Neither The Nasdaq Group, Inc. nor any of its affiliates makes any recommendation to buy or sell any financial product or any representation about the financial condition of any company or fund. Statements regarding Nasdaq’s proprietary indexes are not guarantees of future performance. Actual results may differ materially from those expressed or implied. Past performance is not indicative of future results. Investors should undertake their own due diligence and carefully evaluate companies before investing. ADVICE FROM A SECURITIES PROFESSIONAL IS STRONGLY ADVISED.
Nasdaq Media Contacts: Matthew Sheahan, + 220.127.116.1145, Matthew.Sheahan@nasdaq.com Nasdaq Issuer & Investor Contact: Natasha Selzer, Nasdaq, +1.301.978.8623 CRD Analytics Contact: Michael Muyot, +1.347.415.6243, email@example.com Analyst Desk Contact: Mark A. Serwinowski, +1.720.656.4340, firstname.lastname@example.org