S&P Dow Jones Indices (SPDJI) has launched two indices with climate and sustainability-based objectives as part of a Paris-aligned and climate transition index range. The S&P Eurozone LargeMidCap Paris-Aligned Climate index and the S&P Eurozone LargeMidCap Climate Transition index, which initially started as a concept, include the climate and sustainability-based objectives set out by the European Union (EU). The indices comply with the EU Paris-Aligned Benchmark and the EU Climate Transition Benchmark, respectively, set out by the EU Sustainable Finance Technical Expert Group final report in 2019.
The SPDJI’s Paris-aligned and climate transition (PACT) indices incorporate datasets and analytics from Trucost, an environmental risk analytics company and subsidiary of SPDJI. From their parent index, the S&P Eurozone LargeMidCap index, the indices select and weight companies that are compatible with a 1.5°C global warming climate scenario and meet several other climate-focused objectives.
SPDJI plans to expand its PACT indices range in the coming months with regional and county-specific indices used in Europe, the US and developed markets.
Source: ETF Stream