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Laxman Pai, Opalesque Asia: The global index provider S&P Dow Jones Indices (SPDJI) has launched two indices designed to track the performance of companies that are committed to deep decarbonization, 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 new S&P Paris-Aligned & Climate Transition (PACT) Indices 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.
Besides, the indices incorporate the Financial Stability Board's Task Force on Climate-Related Financial Disclosures' (TCFD) recommendations for asse...................... To view our full article Click here
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