To form part of the NIFTY100 ESG Index, stocks should qualify the following eligibility criteria:
- Stocks should form part of NIFTY 1000
- Companies should have an ESG score
- Companies with a controversy category 4 and 5 will be excluded (scale: 1-5, category of 1 being least controversial)
- Companies engaged in the business of tobacco, alcohol, controversial weapons and gambling operations shall be excluded.
The number of constituents in the index will be variable. Sector weights are based on free float market capitalisation. Each constituent within sector is ESG tilt weighted and capped at 10%. Index is reconstituted on a semi-annual basis.