Frankfurt-based Solactive AG has launched a new index that provides exposure to companies that are proven to be making a significant contribution to the advancement of the United Nations’ (UN) sustainable development goals (SDGs).

The Solactive sustainable development goals world index will include 50 equally weighted companies that have a positive net impact on sustainable development. These companies’ actions will be measured against the UN’s 17 SDGs that were established to guide international co-operation in achieving sustainable development, ending poverty and tackling climate change. UN member countries adopted the goals in 2015, which require active participation from governments, corporations and investors, according to Solactive’s announcement released Thursday.

Solactive is using proprietary methodology developed by Vigeo Eiris, a European provider of environmental, social, governance (ESG) research, to determine the companies whose products, services and behaviours match the SDGs. For example, companies for which sustainable products such as renewable energy or essential medicines represent a significant proportion of business activity are eligible for the index while companies involved in industries such as nuclear, tobacco or firearms are left out.

The ESG screenings are then combined with a low-volatility filter, while applying country and sector caps. There will be a U.S. dollar version and a euro-based version of the index.

“We at Solactive see increasing demand for indices offering ESG compliant access to markets as a result of long-term initiatives such as UN’s SDGs,” says Henning Kahre, head of research at Solactive AG, in a statement. “For the Solactive sustainable development goals index, we combine our expertise in ESG-focused index design with strong and experienced partners in the space, on the ESG research as well as on the product side.

“Furthermore, this new index series adds a smart beta layer on top of the initial universe of stocks, combining two of the most relevant themes in the indexing industry these days,” he adds.

Paris-based BNP Paribas SA will issue structured products tied to the new index later this year.