Results from Nasdaq NQCRD Global Sustainability Index - Semi-Annual Performance Review

Thursday, 06. July 2017 18:14

New York, July 06, 2017 (GLOBE NEWSWIRE) -- New York, July 6, 2017 - The Nasdaq Group (Nasdaq: NDAQ), CRD Analytics, a leading provider of independent sustainability investment analytics and The Analyst Desk, a global ESG Intelligence and Analytics firm and management team of the Nasdaq CRD Global Sustainability Index, today announced the results and key takeaways from the 2017 semi-annual Sustainability Index Performance Review.

The Nasdaq CRD Global Sustainability Index (Nasdaq: NQCRD) is the leading "Sustainability Index" focused on Smart Alpha, which tracks performance of 400 public companies executing a business strategy for sustainable development focused on long-term value creation, financial returns, environmental performance and positive societal impact, i.e., "Shared Value".

Launched in 2009, the NQCRD Index employs a transparent, rules-based methodology powered by the SmartViewTM 360 analytics platform, which integrates ESG Indicators that align with the Global Reporting Initiative G4 Sustainability Reporting Guidelines, the UN Sustainable Development Goals and Leading Indicators which measure growth, productivity and risk management.

There were twenty-two company additions and deletions to the Index based on the Semi Annual Performance Review (May and November).  The following securities were added or deleted as of trading on Monday, May 22, 2017:

Additions

Additions: The following twenty-two securities were added to the Index:  ABN AMRO Group; Air Canada; Atlas Copco; Aviva; Banco de Credito del Peru; Cardinal Health Inc.; China Mobile; China Unicom; CTT-Correios de Portugal; Endesa; Enel Group; Engie Brasil Energia; ING Group; NextEra Energy Inc; Nordea Bank; Norwegian Air; Norwegian Cruise ORD; SingTel Rg; Swedbank; Telefonica Br; Telenor; and Telia Company.

Deletions: As a result of the Index reconstitution, the following twenty two securities were removed from the Index: ASM International; Barclays Rg; Boiron; Compugroup Medical; Deutsche Bank N; Drillisch I; Goldcorp; IPSEN; James Halstead Rg; Johnson and Johnson DC; Newmont Mining Corp; Pick-n-Pay Store Rg; Qiagen Rg; Rational I; Shire Rg; Spar Group Rg; STADA Arzneimit N; Stryker CP; TeraDyne Inc.; Veeco Instrument; Vulcan Materials HC and Waters CP.

Sentiment: Sustainable Development Goals Drive All Markets Creating Leapfrog Opportunity for Asian Businesses - The EU was first to adopt Sustainable Development Goals to measure impact and ROI, with the US and North American Markets considered fast-followers. The Business and Sustainable Development Commission, launched in January 2016 by the UN Council, claims that Sustainable Development is the greatest economic opportunity of a lifetime. It predicts that Asian businesses alone stand to generate US $5 Trillion by shifting to more sustainable ways of making money.  With political gridlock and regulatory uncertainty in the EU and US, Asian companies have an opportunity to align regulatory and business investments with the SDGs. 

Michael Muyot, President of CRD Analytics and Co-Founder of The Analyst Desk

"We are seeing a significant shift in the geographic and industry diversity of the NQCRD Index. European companies continue to lead, with American companies driving continuous improvement, however the Asian businesses are making strong strides in embracing sustainable development.  The ESG leading indicators are very powerful in identifying the companies that are walking the talk and creating real shared value around the most critical economic, social and environmental issues."

Trends and Takeaways from the 2017 Semi-Annual Performance Review

Analysis of the 2017 May Performance Review provides some key insights into the sustainable business practices of the worlds top performing companies and trends in the investor community.

  • Continuous Improvement Across all Sectors - The NQCRD Index is a dynamic Index, representing the continuous improvement of the listed company securities across all ESG Indicators, while delivering a solid market cap to revenue ratio; a good sign of inline valuation with performance results.

  • Top 3 Industries Added - Financials, Telecom and Utilities - Representing 16 of the 22 companies added into the NQCRD Index in May 2017.  The Financial and Telecom sectors are realizing years of efficiency and productivity gains resulting from automation, robotics and artificial intelligence. The Utilities Sector has dynamic and mixed regulatory and competitive challenges and opportunities, and facing energy benefits moving towards cleaner energy while remaining profitable.

  • Top 3 Industries Removed - Healthcare, Industrials and Technology, representing 15 companies of the 22 removed from the NQCRD Index in May 2017.  The Healthcare and Technology sectors are dynamic and under extreme pressure to continuously produce extraordinary and perhaps unsustainable quarterly returns. The Industrials sector is fragmented in its adoption of efficiencies and productivity gains. Companies that were removed failed to demonstrate maturity in adopting sustainable business practices that drive business-returns and stakeholder impacts for society and the environment.

  • Most Challenging ESG Indicators to Adopt - Strategy and Vision.  Articulating an overarching strategy for sustainable development and long-term value creation G Indicators to adopt (which can have the greatest near-term value for embedding sustainability strategy into operations) is articulating the company's overarching strategy for sustainable development. Recently addded securities demonstrate the ability to articulate shared value creation, impact and ROI. 

  • ESG has gone Mainstream - As represented by the significant growth in global assets under management (AUM), the use of ESG criteria as "extra-financial" data to inform buy/sell decisions have become core to investor portfolio strategies. 

Mark A. Serwinowski, President of MetaVu, CEO and Co-Founder of The Analyst Desk

"Increased transparency and reporting quality across all sectors indicates companies integrating ESG criteria into risk management, strategy and operations.  Another fast growing trend is the adoption of Sustainable Development Goals as part of corporate reporting.  Recognized leaders are linking their ESG Reporting with a Sustainable Development Goal, communicating their shared value creation story in relatable terms, all in context of financial fundamentals and long-term value creation."

The Nasdaq NQCRD Sustainability Index is evaluated on a semi-annual basis in May and November in context of more than 4,000 companies for a listing composite of 400 securities recognized as leaders in ESG and Financial performance. For more information about the Nasdaq CRD Global Sustainability Index, including detailed eligibility criteria, visit https://indexes.nasdaqomx.com/Index/Overview/NQCRD.

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About Nasdaq Global Indexes

Nasdaq Global Indexes has been creating innovative, market-leading, transparent indexes since 1971. Today, our index offering spans geographies and asset classes and includes diverse families such as the Dividend Achievers, Global, Nordic, Green Economy, Sharia and Commodity Indexes. We continuously offer new opportunities for financial product sponsors across a wide-spectrum of investable products and for asset managers to measure risk and performance. Nasdaq Global Indexes also provides custom index services and design solutions to selected financial organizations. For more information about Nasdaq Global Indexes, visit indexes.nasdaqomx.com.

Daily index values, weightings and historical data for Nasdaq indexes are available via Nasdaq Global Index Watch and Nasdaq Global Index Data Service.

 

About CRD Analytics

CRD Analytics is a leading provider of independent sustainability investment analytics. Using its proprietary SmartView® 360 Platform, CRD Analytics empowers its clients with actionable and performance-driven information distilled from large sets of complex data including financial, environmental, social, governance, and reputational risk. CRD Analytics partners with its clients to construct proprietary index-based products, Exchange-Traded Funds (ETFs), separately-managed accounts, mutual funds and Unit Investment Trusts (UITs). 

For more information, go to www.crdanalytics.com

 

About The Analyst Desk

The Analyst DeskSM provides ESG Intelligence, Analytics and Advisory to measure, manage and communicate Impact, ROI and Shared Value. The Analyst Desk was founded 2014 by the CEO of MetaVu, the award-winning sustainable development advisory and Wall Street investment analytics firm CRD Analytics, whose SmartView® 360 platform powers the Nasdaq CRD Global Sustainability Index, SeaCrest Global Clean Energy Portfolio and other international standards in sustainability rankings, portfolios and indexes.  For more information, go to www.AnalystDesk.com

 

The information contained above is provided for informational and educational purposes only, and nothing contained herein should be construed as investment advice, either on behalf of a particular financial product or an overall investment strategy. Neither The Nasdaq Group, Inc. nor any of its affiliates makes any recommendation to buy or sell any financial product or any representation about the financial condition of any company or fund. Statements regarding Nasdaq's proprietary indexes are not guarantees of future performance. Actual results may differ materially from those expressed or implied. Past performance is not indicative of future results. Investors should undertake their own due diligence and carefully evaluate companies before investing. ADVICE FROM A SECURITIES PROFESSIONAL IS STRONGLY ADVISED.

 

Nasdaq Media Contacts:  Joseph Christinat, Nasdaq, +1.646.441.5121, Josh Machiz, Nasdaq, +1.212.231.5614
Nasdaq Issuer & Investor Contact: Natasha Selzer, Nasdaq, +1.301.978.8623
CRD Analytics Contact:  Michael Muyot, +1.347.415.6243, mmuyot@crdanalytics.com
Analyst Desk Contact: Mark A. Serwinowski, +1.720.656.4340,  info@analystdesk.com

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