S&P Dow Jones Indices has launched its latest index, the S&P Long-Term Value Creation (LTVC) Global Index, in collaboration with Canada Pension Plan Investment Board (CPPIB). According to the provider, the index is intended to measure companies with the potential to create long-term value based on sustainability criteria and financial quality.

The S&P LTVC Global Index is compiled by combining both qualitative and quantitative measures into a single metric which is then used to determine a company’s potential for long-term value addition. S&P DJI has stated that only companies with a sustained history of financial quality and a demonstrated ability to focus on long-term strategy have been considered. Companies with these attributes are more likely to maintain shareholder value due to an increased competitive advantage.