Scientific Beta

ERI Scientific Beta is pleased to announce that it has signed the United Nations-supported Principles for Responsible Investment (PRI). The Principles for Responsible Investment is the world's leading proponent of responsible investment. It works to understand the investment implications of environmental, social and governance (ESG) factors and to support its international network of investor signatories in incorporating these factors into their investment and ownership decisions.

ERI Scientific Beta is pleased to announce that it has signed the United Nations-supported Principles for Responsible Investment (PRI).

The Principles for Responsible Investment is the world's leading proponent of responsible investment. It works to understand the investment implications of environmental, social and governance (ESG) factors and to support its international network of investor signatories in incorporating these factors into their investment and ownership decisions. The PRI acts in the long-term interests of its signatories, of the financial markets and economies in which they operate and ultimately of the environment and society as a whole.

Forerunners in the domain of Socially Responsible Investment (SRI) and low carbon smart beta investing, EDHEC-Risk Institute and ERI Scientific Beta have been providing a custom SRI smart beta index to the additional pension scheme for French civil servants, ERAFP, for over five years (since June 2011). Earlier this year ERAFP announced that it is awarding a mandate to asset managers for a listed equities portfolio worth €500 million to €1 billion that will be benchmarked to the Scientific Beta Eurozone Max Sharpe Ratio ERAFP SRI Carbon Efficient index. ERI Scientific beta has been supplying an SRI-compliant custom version of its flagship Multi-Beta Multi-Strategy index to a major Scandinavian investor since 2014.

In early 2015, ERI Scientific Beta launched a series of low carbon smart beta indices that enable institutional investors to significantly reduce the carbon intensity of their equity investments, while at the same time outperforming traditional market indices. The exclusion from the index of the largest carbon emitters, the worst firms in terms of carbon intensity in each sector of activity, and the largest holders of fossil assets, guarantees that these indices have a strong positive impact on the environment by weighing on the value of the stocks of the excluded firms, thereby obliging them to change their strategy or their production process in order to be removed from the exclusion list.