Dutch-based asset manager Robeco has launched a sustainable Index family, the Robeco SDG Low-Carbon Indices. The launch follows the introduction of its multi-factor Index range back in 2017.

Similar to the multi-factor index range, the SDG low-carbon Indices are available for seven regions: Global AC, Global DM, Emerging Markets, US, Europe, Asia-Pacific and Japan.

The index aims to make a positive contribution to the UN Sustainable Development Goals and applies Robeco’s proprietary SDG Framework. Negatively scored stocks based on the SDG Framework are excluded from the index universe.

The index also aims to make a positive contribution to a low-carbon economy and obtains a significant carbon footprint reduction compared with market cap indices. The forward-looking view of Robeco’s climate strategy team, led by Lucian Peppelenbos, and the SDG Framework are used to lower the carbon footprint and to differentiate between climate laggards and climate leaders.

The Robeco SDG Low-Carbon Indices offer a solution that combines two trends in the market: index investing and sustainable investing and are a sustainable alternative to passive market cap indices.

Joop Huij, head of sustainable index solutions: “We’re very excited to have launched the new set of indices for our clients. In addition to private transparency for our clients, the SDG Low-Carbon Indices have low turnover, liquidity and transaction costs taken into account in the index construction and the high capacity is monitored and managed. This all allows for efficient implementation for our clients. Our team works closely together with Robeco’s SI Center of Expertise to ensure the new Indices will remain state-of-the-art and we will keep innovating them for our clients”.