The S&P 500® ESG Index: Integrating Environmental, Social, and Governance Values into the Core

EXECUTIVE SUMMARY

• The S&P 500 ESG Index aligns investment objectives with environmental, social, and governance (ESG) values.

• It can serve as a benchmark as well as the basis for index-linked investment products. The index’s broad market exposure and industry diversification result in a return profile similar to that of the S&P 500.

• The index uses the new S&P DJI ESG Scores (see page 4) and other ESG data to select companies, targeting 75% of the market capitalization of each GICS ^®  industry group within the S&P 500.

• The S&P 500 ESG Index excludes tobacco, controversial weapons, and companies not in compliance with the UN Global Compact (UNGC). In addition, those with S&P DJI ESG Scores in the bottom 25% of companies globally within their GICS industry groups are excluded.

• Our methodology results in an improved composite ESG score compared with the S&P 500. This holds true in all industries.