SDI AOP data used in newly launched Philips Pensioenfonds index

In December 2021, Philips Pensioenfonds launched the iSTOXX® PPF Responsible SDG Index using the SDI AOP data, which serves as a benchmark for its € 4,5 bn developed market equities portfolio. This benchmark enables Philips Pensioenfonds to align the investment portfolio with the sustainability preferences of their beneficiaries while retaining a diversified portfolio with a low cost implementation. This initiative recently was extended to emerging markets equity portfolio of € 370 million with the launch of the iSTOXX® PPF Responsible SDG Emerging Markets Index.

The methodology of the iSTOXX PPF Responsible SDG Emerging Market Index increases exposure to companies with a positive effect on the four selected SDGs:

• good health and well-being (SDG 3)
• sustainable cities and Communities (SDG 11)
• responsible consumption & production (SDG 12)
• climate action (SDG 13)

The exposure to companies that contribute with at least 10% of their revenues to these SDGs, will increase by a minimum of 5%-points in the index, which is about double their standard benchmark weighting. In addition, the methodology excludes companies which are obstructive to these SDGs, while also targeting a carbon intensity reduction of 30% compared to its benchmark. The selection process incorporates data from the Sustainable Development Investments Asset Owner Platform (SDI AOP).

James Leaton (Research Director SDI AOP) “The latest initiative of Philips Pensioenfonds to align with the SDG’s and use the SDI AOP data shows how the expanded coverage across emerging markets and fixed income is meeting the needs of our user community.”

Read the full press release here
Want to know more about the Philips SDI AOP use case? Click here.