How Does the S&P Europe 350 ESG Index Work?

Launched in 2019, the S&P Europe 350® ESG Index is designed to represent a broad-based, sustainable European benchmark. The index looks to provide an efficient tool for those aiming to focus on the European market, while aligning investments with ESG principles. Here, we dive into how the index achieves this—and why index design matters.

The S&P Europe 350 ESG Index brings ESG considerations to the headline S&P Europe 350, which seeks to track the large-cap developed European market, spanning 16 countries. First, the index applies baseline exclusions by removing companies involved in business activities such as tobacco, controversial weapons and thermal coal. The index further removes companies in the bottom 25% by S&P DJI ESG Score within each industry group. Companies are then selected by their S&P DJI ESG Score, with the index targeting 75% of each GICS® industry group by market cap.

You can now read the full whitepaper at the link below