The index tracks companies within sectors and industries exhibiting disproportionate African American consumption share relative to income and population share according to the annual Bureau of Labor Statistics Consumer Expenditure Survey. The disproportionate consumption factor is defined as consumption categories where the African American consumption share % exceeds the African American consumer unit population share of 13.2%. Each eligible consumption category in the Consumer Expenditure Survey is matched to the relevant industries and sectors according to the North American Industry Classification System (NAICS).

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The index represents a new ESG factor concept (demographic consumption) based on UN Sustainable Development Goal 10 of reducing inequality within and among countries.

 

By focusing on demographic consumption as opposed to common ESG models of “social scoring” the index seeks to effectively create a circular flow of income while increasing individual wealth within the African American sub economy by aligning consumption with ownership as a basis and starting point for market participation and investor education.