NH Investment & Securities Develops Index for 'ESG Holding Companies and Gangnam Apartments'

Sustainable Power Plant Signs Strategic Business Agreement (MOU) with Tanker Fund

(From left) Yoon Deok-chan, CEO of the Sustainable Development Institute; Lim Gye-hyun, Head of Business Strategy Division at NH Investment & Securities; and Lim Hyun-seo, CEO of Tanker Fund, are taking a commemorative photo after signing a strategic business agreement (MOU) for the development of the iSelect index on the 8th at the NH Investment & Securities headquarters in Yeouido, Seoul. Photo by NH Investment & Securities

[Asia Economy Reporter Kum Boryeong] NH Investment & Securities is promoting the development of diverse and innovative indices.

NH Investment & Securities announced on the 9th that it signed a 'Strategic Business Agreement (MOU) for iSelect Index Development' with Sustainable Development Lab and Tanker Fund at its headquarters in Yeouido on the 8th.

The main goal is to establish a foundation for ESG (Environmental, Social Responsibility, Governance) investment and real estate price evaluation tracking systems by utilizing fintech technology.

First, they will develop the 'ESG Holding Company' index, which combines NH Investment & Securities' know-how in index development and calculation with Sustainable Development Lab's ESG-related data. Sustainable Development Lab evaluates companies by comprehensively assessing corporate governance, leadership, labor-management relations, work culture, and contributions to environmental protection to calculate ESG scores. To quickly reflect the current status of corporate ESG risks, they analyze news from over 90 media outlets daily and calculate ESG risk scores weekly.

In collaboration with Tanker Fund, a real estate fintech company, they will create the 'Gangnam Apartment Index.' Tanker Fund possesses technology that can track price changes in real estate nationwide.

NH Investment & Securities launched an Index Business Task Force Team (TFT) in September last year to develop, calculate, and sell marketable indices. So far, they have developed three indices: iSelect K-REITs PR Index, iSelect K-REITs TR Index, and iSelect K-Small Giants Index. They plan to add four more indices within this year.

Lim Gyehyun, Head of the Management Strategy Division at NH Investment & Securities, said, "We are very pleased to become new index development partners with Sustainable Development Lab and Tanker Fund, which possess excellent fintech capabilities," adding, "By combining NH Investment & Securities' know-how in index investment methodology development, we expect to lead a new paradigm in the passive market."

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