The Cleaner Living IndexAn ESG Approach to Thematic Investing

Cleaner Living has moved more and more into the mainstream in recent years as consumers become more conscious of the ingredients and materials used in the foods they eat and the products they surround themselves with on a daily basis. Cleaner Living seeks to eliminate, wherever possible, artificial chemicals, additives and ingredients that are deemed to have potentially harmful effects, as well as avoid the materials or technologies that can damage the planet through pollution or depletion of natural resources.

The initial constituent list for the Tematica Research Cleaner Living Index (CLNR) comprises more than 50 companies whose businesses each derive at least 50% of their sales or profits from one or more aspect of Tematica’s Cleaner Living investing theme. In keeping with that theme, the constituents are comprised of companies across several sectors and include food, beverage, and snack, companies; restaurants; health and beauty as well as home care products; and utilities, recycling and auto companies among others.  As more companies shift their businesses to capture the benefits associated with the Cleaner Living tailwind, it means over time there will be new entrants to the index. Given the degree of M&A activity we are witnessing as companies look to hasten that transformation, we are likely to see constituents removed as well.