Qontigo has licensed the DAX ESG Target Index to BlackRock for the launch of a new iShares ETF.

Qontigo says the new index will track the DAX while maximizing its ESG score and reducing its carbon intensity by at least 30%.

The DAX ESG Target index offers a similar risk and return profile as the benchmark index and is the first DAX ESG index that integrates ESG improvement as well as addressing climate risks. It provides a portfolio optimization (re-weighting) to meet tracking error constraints and CO2 reduction goals and incorporates ESG rating information from Sustainalytics. The index also applies Global Standards Screening provided by Sustainalytics and product involvement screens for weapons (controversial weapons, military contracting, small arms), tobacco, thermal coal, nuclear power, and oil sands. The index is being licensed to BlackRock for an iShares ETF.