Four new indices to track performance of companies with above-average ESG ratings in Europe
Thomson Reuters has launched a new series of its corporate responsibility indices (CRI) aimed at measuring the performance of European companies that are top-rated for their record in addressing ESG issues, the company says.
The Thomson Reuters CRI Europe indices, which will cover stocks with a higher-than-average ESG rating, will include an overall European ESG index, plus three individual indices that focus on the environment, social issues and corporate governance.
The CRI indices cover European companies including Nestlé, Novartis, Siemens, Carrefour, Vivendi, BT Group and others. Thomson Reuters already maintains ESG indices that cover US large caps, emerging markets and developed markets worldwide. Stocks in the indices are weighted according to their market capitalization and Thomson Reuters’ corporate responsibility ratings.
‘The Thomson Reuters CRI Europe Indices mean investors are now able to measure the performance of European markets while being assured that all included stocks have ESG ratings superior to the weighted average for indices such as the S&P 500 or MSCI EAFE,’ says Joseph LaCorte, president of S-Network Global Indexes, Thomson Reuters’ consultant on developing and maintaining indices and ratings. ‘These new indices, coupled with the strength of the Asset4 database, reinforce Thomson Reuters as a leading provider of ESG data.’
The company says live calculations of the European CRI indices began on July 28 and historical data is available dating back to December 31, 2007.
The Thomson Reuters CRI US Large Cap ESG Index, which measures large US companies with higher ESG ratings, rose 4.8 percent in the second quarter, slightly underperforming the 5.3 percent increase of the S&P 500 Total Return Index in the same period.
The CRI Developed Markets Index rose 4.3 percent, matching gains of the MSCI Europe, Australasia and Far East TR Gross Dividend Index.
