Marking a further extension of sustainable investment options for sustainability-focused investors, index provider S&P Dow Jones Indices (S&P DJI) announced today the launch of ESG versions of its Dividend Aristocrats Index series.
Aye Soe, Global Head of Product Management at S&P Dow Jones Indices, said:
“Dividend payments are often viewed as an important barometer of companies’ financial health and outlooks. Market participants closely monitor companies’ long-term dividend payment track records as indicators of corporate maturity and balance sheet strength. Investors also often utilize dividend-based strategies to help manage risks and returns especially in bearish and volatile market conditions.”
S&P’s Dividend Aristocrats series focuses on companies that have consistently increased dividend payments on an annual basis over a period of time. The new sustainability-focused series measures the dividend yield-weighted performance of companies from each index’s underlying parent index that meet specific ESG criteria and have followed a managed-dividends policy for a specified number of years. Eligibility is determined utilizing S&P Global’s ESG scores, and through the application of additional screens and exclusions for companies involved in specific business activities, such as those not aligned with the principles of the UN’s Global Compact, and those that are involved in ESG controversies.
The new indices included in the launch are:
- S&P Developed ESG Dividend Aristocrats Index
- S&P ESG High Yield Dividend Aristocrats Index
- S&P Global ESG Dividend Aristocrats Index
- S&P Global ESG Dividend Aristocrats Quality Income Index
- S&P Euro ESG High Yield Dividend Aristocrats Index
Reid Steadman, Global Head of ESG Indices at S&P Dow Jones Indices, said:
“S&P Dow Jones Indices is proud to offer ESG versions of many of our most well-known and respected benchmarks such as our Dividend Aristocrats and flagship U.S. equities index family. The S&P ESG Dividend Aristocrats Indices include a layer of sustainability screens, reflecting the market’s growing recognition of the financial materiality and impact of ESG issues on corporate balance sheets.”