S&P Dow Jones launches Paris-aligned climate indices for eurozone
S&P Dow Jones Indices, one of the world's leading index providers, has announced the launch of the two Paris-Aligned Climate Transition (PACT) indices.
The two eurozone indices, S&P Eurozone LargeMidCap Paris-Aligned Climate Index and the S&P Eurozone LargeMidCap Climate Transition Index, have been designed with a holistic approach to incorporate a broad range of climate and sustainability-based objectives.
These include the climate objectives and minimum standards for the European Union (EU) Paris-Aligned Benchmark (PAB) and EU Climate Transition Benchmark (CTB) as specified by the EU Sustainable Finance Technical Expert Group (TEG) in its September 2019 Final Report on Climate Benchmarks and Benchmarks' ESG Disclosure.
The EU created the PAB and CTB classifications and standards not only to fulfill risk reduction goals but also to create opportunities that will emerge as European economies transition to a low-carbon, climate resilient and more resource efficient one.
The indices incorporate the Financial Stability Board's Task Force on Climate-Related Financial Disclosures' (TCFD) recommendations for assessing climate-related risks, opportunities and financial impacts.
"There is a growing urgency in Europe and globally to identify solutions that address the negative consequences companies and institutions face due to climate change. The PACT Indices provide transparency with respect to these consequences and investment strategies that address climate change risks and opportunities," said Reid Steadman, Global Head of ESG Indices at S&P Dow Jones Indices.
The PACT Indices utilize rich proprietary datasets and analytics from Trucost, part of S&P Global. The indices measure the performance of eligible equity securities from the S&P Eurozone LargeMidCap Index, selected and weighted to be collectively compatible with a 1.5°C global warming climate scenario and to meet several other climate-focused objectives.
The company said the indices are developed to help investors and other market participants align their investments and manage climate-related risks and opportunities.
Subscribe to International Investment's free, twice-daily, newsletter
by Tanya at http://www.ifacareers.today
Daniel van Niekerk
Welcome to Prestige IFA Jobs, the premier international wealth management recruitment service. Since our establishment in 2016, we have earned a reputation as the go-to choice for discerning international wealth management and investment advisory firms around the world. At Prestige IFA Jobs, we redefine the art of headhunting in our industry. We stand unrivaled, leading the way with our unique approach and unmatched expertise. No one does what we do quite like us. Our commitment goes beyond simply matching a qualified candidate with a good IFA firm. We believe in finding the perfect synergy between candidate and company. With our extensive background in personal financial advisory across multiple countries, we take the time to deeply understand our candidates and our clients. So, when things go wrong, don't go wrong with them...because the successful warrior is the average man, but with laser focus.
