Index provider S&P Dow Jones Indices (S&P DJI) announced today the launch of the S&P Net Zero 2050 Climate Transition Select Index Series and S&P Net Zero 2050 Paris-Aligned Select Index Series, tracking the performance of large-cap companies aligned with a 1.5ºC global warming climate scenario.
The launch follows the introduction last year by S&P DJI of the S&P Paris-Aligned & Climate Transition Indices (S&P PACT), and extends the series with new benchmarks specifically designed as underlying indices for the structured product market.
The PACT indices are designed to closely track their parent benchmarks, while meeting climate-related criteria, as defined by the European Commission’s Technical Expert Group’s (TEG) standards for Climate Transition and Paris-Aligned benchmarks. Key climate-related features for the indices include reductions in greenhouse gas (GHG) emissions intensity of at least 30% for the climate transition benchmarks and 50% for the Paris-Aligned benchmarks, at least 7% average annual reductions in emissions intensity, and exposure to sectors with high impact on climate change. The indices also apply ESG screens, applying exclusions for companies involved with controversial weapons and tobacco business activities, and those in violation of UN Global Compact Principles or other ESG controversies.
The first of the new benchmarks launched under the new series follow the S&P Eurozone 50, S&P France 20, and S&P EuroUSAJapan 100 indices.
Jaspreet Duhra, Global Head of ESG Indices at S&P Dow Jones Indices, said:
“We are very excited to extend our S&P Net Zero 2050 ESG index offering to include indices which bring greater transparency in measuring climate-related risks and that have been designed to cater to the structured product market. S&P DJI is committed to helping our customers and market participants address climate change and achieve their goals in the path to net zero by 2050.”