NZX/S&P Dow Jones Indices launch ESG Tilted Index

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More information regarding the S&P DJI ESG Scores can be found at the following link:
https://www.spglobal.com/spdji/en/documents/additional-material/faq-spdji-esg-scores.pdf
S&P Global Public
Press Release

New Zealand’s Exchange and S&P Dow Jones
Indices launch S&P/NZX 50 Portfolio ESG Tilted
Index

ESG index launches as Kiwi investors increasingly incorporate ESG
principles in their portfolios

WELLINGTON, 20 JULY 2021 – S&P Dow Jones Indices
(“S&P DJI”), the world’s leading
index provider, and
New Zealand’s Exchange
(“NZX”) continue to grow their family of indices
with the launch of the S&P/NZX 50 Portfolio ESG Tilted Index.

Jaspreet Duhra, Global Head of ESG Indices at S&P Dow Jones Indices
said: “We are
pleased to collaborate with NZX on the launch of this innovative index to support the growing
interest in sustainability factors from investors in the New Zealand market.”

“With the heightened focus on the impact of companies’ environmental, social and governance
(ESG) footprints, this index serves as an independent and transparent tool in measuring ESG
performance as more investors incorporate sustainability targets in their investment decisions.”

NZX Chief Executive, Mark Peterson
, said: “An important role for New Zealand’s Exchange is
to ensure capital can be invested with confidence into companies that provide opportunities for
sustainable growth.”

“There is a real interest and growing focus on ESG, and this index now provides a performance
benchmark for the development of product that the market is demanding. Investors will have
more choice and, importantly, another lens on the New Zealand market, that allows them to
retain diversification while giving more weight to high-ESG performance companies.”

Mark Peterson said: “We also see this as further rewarding and encouraging the focus on
disclosing and discussing companies’ approaches to sustainability and how they are managing
ESG risks and opportunities. The performance of companies who advance will be reflected in
improved weightings in the index.”

He said many NZX-listed companies are already strongly focused on ESG performance, with
the five-year annualised return of the new index (measured to June 2021) clearly outperforming
the S&P/NZX 50 Portfolio Index.

Index Methodology
The S&P/NZX 50 Portfolio ESG Tilted Index is based on the S&P/NZX 50 Portfolio Index but
offers enhanced ESG characteristics than its parent. The S&P/NZX 50 Portfolio ESG Tilted
Index over or under-weights companies based on their respective S&P DJI ESG Score
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S&P Global Public

The Index uses the universe of stocks from the S&P/NZX 50 Portfolio Index which is comprised
of the same constituents as New Zealand’s headline equity index, the S&P/NZX 50 Index, but
with a 5% cap on the float-adjusted market capitalisation. The tilted approach is designed to
provide exposure to a diversified portfolio across various sectors while targeting high ESG-
performing companies.

In addition to the S&P DJI ESG Scores, the Index follows eligibility criteria based on the
companies’ business activities and their alignment with the UN Global Compact (UNGC)
Principles. Companies that produce controversial weapons, thermal coal, and tobacco are
excluded. In response to regulation and demand in the New Zealand market, the Index also
excludes companies within the energy sector as well as those that operate in certain GICS sub-
industries such as casinos and gaming.

For further information, please contact:

NZX Media – David Glendining +64 27 301 9248, david.glendining@nzx.com
NZX Investors – Graham Law +64 29 494 2223, graham.law@nzx.com
S&P Dow Jones Indices – Nadja Jiang +852 2841 1017, nadja.jiang@spglobal.com

ABOUT S&P DOW JONES INDICES

S&P Dow Jones Indices is the largest global resource for essential index-based concepts, data
and research, and home to iconic financial market indicators, such as the S&P 500® and the
Dow Jones Industrial Average®. More assets are invested in products based on our indices
than products based on indices from any other provider in the world. Since Charles Dow
invented the first index in 1884, S&P DJI has been innovating and developing indices across the
spectrum of asset classes helping to define the way investors measure and trade the markets.

S&P Dow Jones Indices is a division of S&P Global (NYSE: SPGI), which provides essential
intelligence for individuals, companies, and governments to make decisions with confidence.
For more information, visit: https://www.spglobal.com/spdji/en/.
About NZX

For more than 150 years we have been creating opportunities for Kiwis to grow their personal
wealth and helping businesses prosper. As New Zealand’s Exchange, we are proud of our
record in supporting the growth and global ambitions of local companies.

NZX operates New Zealand's equity, debt, funds, derivatives and energy markets. To support
the growth of our markets, we provide trading, clearing, settlement, depository and data
services for our customers. We also own Smartshares, New Zealand's only issuer of listed
Exchange Traded Funds (ETFs), and KiwiSaver provider SuperLife. NZX Wealth Technologies
is a 100%-owned subsidiary delivering rich online platform functionality to enable New Zealand
investment advisors and providers to efficiently manage, trade and administer their client's
assets. Learn more about us at: www.nzx.com