The time has come for a new approach to ESG indexes.
Objective Standards. Unbiased Perspective. Clear and Straightforward Methodology.
Say hello to the relentlessly rational CRSP ISS ESG Indexes.
The suite is comprised of three ESG index pairs: CRSP ISS ESG Large Cap Prime, CRSP ISS ESG Large Cap, and CRSP ISS ESG Large Cap Industry Balanced. Within each pair are two siblings. One sibling is comprised of “qualifying” securities that meet the applicable ESG threshold. The other sibling is comprised of “remainder” securities that don’t meet that threshold. Taken together, they offer totally transparent, completely neutral view of ESG performance across the entire large cap market. It’s a clearly different—and clearly objective—approach to ESG investing.
CRSP has designed three sibling ESG indexes utilizing the independently-generated ESG Performance scores from ISS (ESG Corporate Rating | ISS).
Index Construction Methodology
The goal of each pair is to give investors a transparent, distinguishable and comparative offering with respect to ESG in which all components of the CRSP Large Cap Index are represented and allocated accordingly to “Qualifying”/ESG or “Non-Qualifying”/Remainder indexes. This construction methodology allows for direct comparison of the performance of each category.
Provides portfolios to compare “Best-in-Class” ESG companies vs. other companies within CRSP US Large Cap. This sub-family uses the ISS “Prime” indicator. Under the ISS ESG framework, Prime status is granted to industry leaders who fulfill the highest performance expectations. Prime rated companies are considered by ISS to be well-positioned to, on the one hand, adequately manage key ESG risks associated with their specific business model, and, on the other hand, capitalize on opportunities offered by transformations towards sustainable development. Prime status is attributed to companies that fulfill ambitious performance requirements regarding the most material topics, taking into account their individual risk exposure.
Provides portfolios to compare the respective top half vs. bottom half companies within CRSP US Large Cap based on the ISS ESG Performance Score. ISS ESG Performance Score enables ESG comparison of companies across different sectors. The ESG and Remainder portfolios divide the CRSP US Large Cap index, using relative ESG comparison instead of absolute, as in the case with CRSP ISS ESG Prime. This sub-family allows comparison of ESG and Remainder performance based only on ESG score, regardless of the sector.
Similar to CRSP ISS ESG, except that it provides portfolios of the respective top half vs. bottom half companies in CRSP US Large Cap within each sector based on the ISS ESG Performance Score. CRSP uses FTSE’s Enhanced Industry Classification Benchmark (EICB) for sectors definition. This approach ensures that the ESG portfolio includes companies from each sector in CRSP US Large Cap. Thus sub-family enables comparison of the ESG vs. Remainder when representation of sectors is similar to CRSP US Large Cap.
CRSP ISS ESG Indexes Quick Reference Table
|Index Description||Index Name||Index Identifier||CUSIP||
Open Val = 1000
|CRSP ISS ESG Prime||CRSP ISS US Large Cap ESG Prime Index (TR)||CLESGPT||12657Y205||9/7/2021||9/7/2021||BBG012CHZKD6|
|CRSP ISS US Large Cap ESG Prime Index (PR)||CLESGP||12657Y106||9/7/2021||9/7/2021||BBG012CHZK64|
|CRSP ISS ESG Non-Prime||CRSP ISS US Large Cap ESG Non-Prime Index (TR)||CLESGNPT||12658A206||9/7/2021||9/7/2021||BBG012CHZKF4|
|CRSP ISS US Large Cap ESG Non-Prime Index (PR)||CLESGNP||12658A107||9/7/2021||9/7/2021||BBG012CHZK73|
|CRSP ISS ESG||CRSP ISS US Large Cap ESG Index (TR)||CLESGT||12658D200||9/7/2021||9/7/2021||BBG012CHZKG3|
|CRSP ISS US Large Cap ESG Index (PR)||CLESG||12658D101||9/7/2021||9/7/2021||BBG012CHZK82|
|CRSP ISS ESG Remainder||CRSP ISS US Large Cap ESG Remainder Index (TR)||CLESGRT||12658E208||9/7/2021||9/7/2021||BBG012CHZKH2|
|CRSP ISS US Large Cap ESG Remainder Index (PR)||CLESGR||12658E109||9/7/2021||9/7/2021||BBG012CHZK91|
|CRSP ISS ESG Industry Balanced||CRSP ISS US Large Cap ESG Industry Balanced Index (TR)||CLESGBT||12658F205||9/7/2021||9/7/2021||BBG012CHZKJ0|
|CRSP ISS US Large Cap ESG Industry Balanced Index (PR)||CLESGB||12658F106||9/7/2021||9/7/2021||BBG012CHZKB8|
|CRSP ISS ESG Industry Balanced Remainder||CRSP ISS US Large Cap ESG Industry Balanced Remainder Index (TR)||CLESGBRT||12658K204||9/7/2021||9/7/2021||BBG012CHZKK8|
|CRSP ISS US Large Cap ESG Industry Balanced Remainder Index (PR)||CLESGBR||12658K105||9/7/2021||9/7/2021||
The CRSP ISS ESG Indices (the "Indices") are published by CRSP. CRSP has contracted with Institutional Shareholder Services Inc. (“ISS”) to use certain data from ISS which forms part of the data included to maintain and calculate the Indices. The Indices are not owned, sponsored, or endorsed by ISS nor does ISS have any responsibility for the administration, management or marketing of the Indices. ISS does not make any representation, express or implied, regarding the advisability of investing in products that are based on the Indices or otherwise relying on the Indices for any purpose and ISS shall not have any liability for any errors, omissions, inaccuracy, incompleteness, delay, or interruption in the Indices, any data related thereto or any values thereof. All intellectual property rights in the data supplied by ISS which forms part of the data to maintain and calculate the Indices is and shall remain the intellectual property of ISS.