Index provider Solactive has launched an ESG index focusing on plastic waste.
The Solactive ISS ESG Beyond Plastic Waste Index includes companies that either reduce, reuse, or recycle plastic waste. The company says investment in such products will help alleviate the waste problems caused by an estimated plastics production of 381 million tonnes in 2015. The index includes developed and emerging market stocks that have market capitalizations greater than €200 million and average daily traded values above €100,000. The index is produced in partnership with ratings company ISS ESG.
The index is rebalanced semi-annually, and each of its components is equally weighted. On the selection date, ISS ESG will review its composition. Examples of its constituents are:
Brambles Ltd.: The company is specialized in the provision of reusable pallets, crates, and containers in the field of containers & packaging. The company aims to achieve zero product waste to landfill by 2020.
BillerudKorsnäs AB: The provider of renewable packaging material is active in the field of pulp and paper manufacturing and has clients in different industry segments.
Rockwool International A/S: The company produces stone-wool-based products, embracing circularity by reusing and recycling old materials. Its products are made of up to 50% of recycled content.
Shimano, Inc.: The bicycle parts manufacturer produces components for alternative means of transport. As tire erosion increases with weight, bicycles cause only a fraction of the plastic pollution generated by cars.
Solactive says that backtesting shows that between February 2013 and August 2019 the index would have seen annualised returns of 13.26% compared with 12.33% for their benchmark Solactive GBS Developed Markets Large & Mid Cap index.