(Credit: Bloomberg)Bloomberg and Rockefeller Asset Management today announced the launch of the Bloomberg Rockefeller US All Cap Multi-Factor ESG Improvers Index, available through the Bloomberg Terminal. The index combines Bloomberg’s risk model, data, and index capabilities with 40 years of environmental, social, and governance (ESG) expertise from Rockefeller Asset Management. Unlike other ESG indices that emphasize screening around ESG leaders or laggards, this index ranks a company's improvement in performance on material ESG issues relative to industry peers.
Bloomberg says that, together with Rockefeller, the company is providing investors with a product that captures high quality and low volatility companies that exhibit positive ESG momentum.
This multi-factor index combines the Rockefeller ESG Improvers Score, an uncorrelated and proprietary alpha enhancing factor, with quality and low volatility factors to pursue outperformance over traditional market-cap weighted indices with low tracking error and minimal sector or other factor deviations. Another distinctive aspect of the index is that it incorporates shareholder engagement techniques that help create shareholder value and catalyze positive change.
Bloomberg says institutional investors are focusing now on underlying ESG factors and trends, which was the impetus for expanding its index offering to include ESG improvers.
The index is administered by Bloomberg’s UK Financial Conduct Authority authorized benchmark administrator, Bloomberg Index Services Limited (BISL). BISL is responsible for calculation, governance, and provision of the index.
