Robeco, The Investments Engineers

Sustainable Index Solutions

Taking high-impact, low-carbon solutions to the next level

Key points

  1. Access to our leading Sustainability and Factor expertise

  2. Transparency towards clients only, to mitigate the risk of overcrowding

  3. Efficient index construction with low turnover and cost and capacity management

Two massive trends have emerged in the market over the past years: index investing and sustainable investing. While solutions tapping into these two areas are widely available, sustainable index solutions with a forward-looking, low-carbon approach that don’t compromise financial objectives and align with the United Nations Sustainable Development Goals is another thing. We use our leading sustainable and index construction IP, research teams and experience to create a compelling sustainable alternative to passive market-cap indices, allowing our clients to align with positive impact and reduce their carbon footprints. 

Our approach

The Sustainable Index Solutions team transforms the broad market index universe into a sustainable index universe. The solutions:

Positive impact

Positive impact

Exclude worst scoring stocks based on Robeco's time-tested SDG Framework. By doing so, our sustainable index solutions give more weight to companies that are aligned with positive impact.

Lower carbon footprint

Lower carbon footprint

Significantly lower the carbon footprint based on fundamental forward-looking view of Robeco Climate Strategy team and SDG Framework: exclude climate laggards and polluters.

Contributing to a low-carbon economy

Contributing to a low-carbon economy

Retain climate leaders, which are companies that might have a high carbon footprint based on their current and past emissions but are driving "green innovation" and therefore essential in the transition to a low-carbon economy. We identify these climate leaders through the Robeco SDG Framework.

Optimize the index

Optimize the index

Optimize the index constituents' weights towards the SDGs (sustainability) for the SDG Low-Carbon indices and towards high and balanced factor exposure (return) for the Sustainable Multi-Factor indices.

Research shows that public transparency of indices causes a key disadvantage to a public index investor. Other market participants try to benefit from this public information, resulting in hidden implicit costs. Robeco's indices are only transparent to you, our client, and we do not share this transparency with all market participants, thereby mitigating these risks and that of overcrowding.

Team

The Sustainable Index Solutions team comprises passionate thinkers who challenge the status quo. We incorporate their award-winning research into our investment process. Senior members of the team have developed and scaled up multiple investment capabilities at Robeco. 

The team consists of many complementary skillsets with academic specializations in climate finance, computer science, econometrics and financial economics. Our PhD program ensures we are able to recruit some of the best talent in the fields of climate finance and econometrics. 

Sub-strategies

Joop Huij - PhD, Head of Sustainable Index Solutions

Joop Huij
PhD, Head of Sustainable Index Solutions

“

Our Sustainable Indices go beyond generic sustainability data and incorporate fundamental and forward-looking information

Sustainability

The Sustainable Index Solutions team integrates sustainability in all their indices. They strive for positive impact through the integration of Robeco's SDG Framework in their indices and to contribute to a low-carbon economy through the integration of both the forward-looking fundamental view of Robeco's Climate Strategy team and our SDG Framework. 

Regions

This strategy is available for various investment regions: Global All Country, Developed Markets, Emerging Markets, US, Europe, Asia-Pacific and Japan.

Ingredients

01

Core solution

A central investment of a long-term portfolio

02

Research-driven

A true understanding of the topic has been in our DNA since the start

03

SDGs

Investments that quantifiably contribute to the SDGs

04

Climate transition

Investing that aims to assist in meeting decarbonization objectives


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In all cases where historical performance is presented, please note that past performance is not a reliable indicator of future results and should not be relied upon as the basis for making an investment decision. Investors may not get back the amount originally invested. Neither Robeco Institutional Asset Management B.V. nor any of its affiliates guarantees the performance or the future returns of any investments. If the currency in which the past performance is displayed differs from the currency of the country in which you reside, then you should be aware that due to exchange rate fluctuations the performance shown may increase or decrease if converted into your local currency. Robeco Institutional Asset Management B.V. (“Robeco”) expressly prohibits any redistribution of the Information without the prior written consent of Robeco. The Information is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use is contrary to law, rule or regulation. Certain information contained in the Information includes calculations or figures that have been prepared internally and have not been audited or verified by a third party. Use of different methods for preparing, calculating or presenting information may lead to different results. Robeco Institutional Asset Management B.V. is authorised as a manager of UCITS and AIFs by the Netherlands Authority for the Financial Markets and subject to limited regulation in the UK by the Financial Conduct Authority. Details about the extent of our regulation by the Financial Conduct Authority are available from us on request.