New index provides exposure to U.S. and Developed European companies whose business activities contribute positively to the UN Sustainable Development Goals (SDGs), is supported by data from Morningstar Sustainalytics and has been licensed by Citi.

Morningstar, Inc., a leading provider of independent investment insights, today announces the launch of the Morningstar Transatlantic Sustainable Development Goals Select 40 Index. The new index, powered by the methodology of the fastest growing global index provider Morningstar Indexes and drawing on the leading ESG data and risk ratings of Morningstar Sustainalytics, is one of the first impact-oriented indexes designed for the structured products market and has been exclusively licensed by Citi for a significant new mandate.

Julien Thibaud, Global Head of Derivatives & Exchange Business Development for Morningstar Indexes, said: “We are excited to collaborate once again with Citi to offer an ESG index-based approach for structured product investors, in this case one of the first impact-oriented indexes for the structured products market. This new index draws on the leading global index methodologies of Morningstar Indexes and is based on the leading ESG research and data of Morningstar Sustainalytics. It is designed to address growing investor interest in impact-oriented investment strategies and market exposures.”

Axel Pierron, Director of Client Relations for Morningstar Sustainalytics said: “We are proud to support an index for investors focused on the positive contribution of their portfolios to achieving the UN Sustainable Development Goals. Through their activities companies can provide products and services that can deliver a number of positive real-life impact, from Human Development, to Climate Action, Healthy Ecosystems, Resource Security, and Basic Needs. These kind of collaborative index initiatives are a way forward for investors to meaningfully contribute to prosperity for people and the planet, now and into the future.”

Elree Winnett Seelig, Head of ESG Markets, Citi added: “This index marks a new step in the collaboration between Citi and Morningstar Indexes to build a differentiated ESG index range based on unique and innovative data sets, addressing our clients’ evolving objectives.”

Arthur Dorbessan, Global Head of Retail Indexes – Citi Multi Asset Group said: “As ESG investment becomes more targeted, it is fundamental to propose more ESG-aligned indices to our clients. Citi is proud to collaborate with Morningstar and Sustainalytics to offer an investment access to companies with material revenues derived from sustainable activities through the Morningstar® Transatlantic Sustainable Development Goals Select Index.”

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The Morningstar Transatlantic Sustainable Development Goals Select 40 Index provides investors with exposure to U.S. and Developed European companies whose business activities contribute positively to the UN SDGs. Index constituents must pass stringent ESG screens and derive at least 25% of their revenue from one or more of the Sustainalytics Impact Themes; Human Development, Climate Action, Healthy Ecosystems, Resource Security and Basic Needs. Constituents are selected based on the highest total impact score as measured by Morningstar Sustainalytics Impact Metrics.   

The new index joins Morningstar Indexes family of sustainable investing index solutions, a global range of market indexes designed to help investors address a variety of sustainable investment goals including ESG risk, climate and impact. Morningstar continues to develop a broad range of market data, insights, investment tools and research to help a wide spectrum of sustainable investment goals across markets.