Index engineering company Solactive and climate metrics and software provider right. based on science announced today the launch of three new 2°C-aligned index solutions. The announcement marks a significant expansion of the companies’ suite of products aimed to enable investors to focus on companies operating in line with a 2°C goal, and to serve as potential underlyings for ETFs and structured products.
With the new launch, Solactive and right.’s 2°C-aligned index suite now adds the key regional investment universes Developed Markets, Developed Markets ex US, and US, to its Europe index. The indices are powered by right.’s economic climate impact data, using the company’s X-Degree Compatibility (XDC) Model to calculate the contribution of an economic entity to climate change until 2050 under various scenarios.
Timo Pfeiffer, Chief Markets Officer at Solactive, said:
“Our expanded collaboration with right. does not only broaden the set of options available to our clients looking to build forward-looking, climate-aware investment strategies but also provides critical insight into global progress towards achieving our mutual goal of a ‘well below 2°C’ increase in global temperature.”
Dr. Sebastian Müller, Co-Founder of right. based on science, said:
“Our mission in creating the X-Degree Compatibility Model was to bring greater transparency to the market – not just on climate-related risks, but also opportunities. In partnering with Solactive to create these indices, we are achieving both, while also helping to direct capital flows towards the transition to decarbonizing the economy.”