Thomson Reuters has announced the launch of the Thomson Reuters CRI India 50 ESG Index, the latest addition to the Thomson Reuters Corporate Responsibility Indices.
Thomson Reuters has unveiled an index tracking the performance of Indian companies with high environmental, social and governance (ESG) standards.
Based on proprietary environmental, social and governance (ESG) data, the index will serve as a credible reference for global investors seeking exposure to Indian companies and investment portfolios with ESG standards.
The index is UCITS compliant and can be licensed as the basis of an exchange-traded fund (ETF) or similar investment product designed to replicate the index, in addition to serving as a benchmark for any actively managed, India-focused ESG fund.
ESG investing has been gaining traction in recent years due to issues such as environmental awareness surrounding climate change and an increased focus on transparency, risk management and corporate governance.
The index uses a dynamic rating methodology that factors in the sector breakdown and diversity characteristics of the Indian stock market. It is objective and transparent as it emphasizes quantitative outcomes and scores rather than subjective corporate policy statements.
Sriram Ramnarayan, India country head, Financial & Risk, Thomson Reuters, said: “The launch of the [Thomson Reuters CRI] India 50 ESG Index is yet another example of Thomson Reuters core competence in providing innovative and reliable tools to the investment community.”
He added: “Local as well as global asset managers and investors will find this index particularly valuable as the requirement for investments to have certain levels of environmental, social and governance standards increases. The ability to identify opportunities that adhere to these standards will provide an advantage to those investing in emerging markets such as India.”