S&P Dow Jones Indices has launched the S&P 500 Equal Weight ESG Leaders Select Index.

The index, based on the equal weighted version of the S&P 500, sees a significant improvement in ESG performance from the parent index, says S&P Dow Jones. It excludes companies with disqualifying UN Global Compact scores, companies with ESG controversies, and companies with S&P DJI ESG scores in the bottom 25% of each global Global Industry Classification Standard Industry Group (GICS) Industry Group.

The remaining eligible companies in each GICS Industry Group with the highest S&P DJI ESG scores are then selected for the index until as close to 40% of the constituent count from each Industry Group is reached.

“The launch of the S&P 500 Equal Weight ESG Leaders Select Index reflects the continued evolution of ESG investing by combining a smart beta factor – equal weight – into an ESG benchmark,” said Margaret Dorn, Senior Director, Head of ESG Indices, North America, S&P Dow Jones Indices. “S&P DJI continues to expand its family of ESG benchmarks with a goal of further encouraging the adoption of sustainable business practices across all industries.”