Risk, analytics, and index solutions provider Qontigo and Mitsubishi UFJ Trust and Banking Corporation (MUTB) announced today the launch of the iSTOXX MUTB Japan Low Carbon Risk 30, a new aiming to track the performance of the best performers in the low carbon transition, based on carbon emissions exposure and carbon risk management.
According to the companies, the new index is being launched as investors in Japan turn to low carbon strategies, following the launch of the country’s goal to reach net zero emissions by 2050, and to achieve a carbon neutral economy, creating opportunities, challenges and new decarbonization-related risks for companies.
The new index will utilize Carbon Risk Ratings from ESG research and service provider Sustainalytics to evaluate companies’ carbon exposure and determine how they are managing them. The index will track the performance of 30 Japanese securities the iSTOXX MUTB Japan Quality 150 Index with the best carbon risk rating, after applying additional ESG screens for companies that are non-compliant with the Global Standards Screening, or those involved with Controversial Weapons.
Qontigo stated that the new index will underlie an ETN to be listed by Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. (MUMSS) on the Tokyo Stock Exchange later this month.