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Ben Leale-Green

Former Associate Director, Research & Design, ESG Indices, S&P Dow Jones Indices

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May 18, 2023

Explaining Optimized Weights

Transparency is commonly seen as a key principal of sustainable investing,1 helping investors understand companies’ sustainability profile and sustainable investment strategies, as well as potentially contributing to investor impact.2 Sustainability is also multifaceted, illustrated by the differences in many of the Sustainable Development Goals (e.g., no poverty and life below water represent very different goals)…

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Mar 30, 2022

S&P PACT Indices Target Sector Neutrality

Recently announced results for a consultation on the S&P PACT™ Indices (S&P Paris-Aligned & Climate Transition Indices) reveal that they will now target country and sector neutrality. This has the potential benefit of comparing companies, as much as possible, to close peers (those in the same sector and country), while reducing active risk. The EU’s…

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Feb 24, 2022

As the UK Targets Net Zero by 2050, the S&P UK PACT Indices Can Too

The UK set goals of reaching net zero targets by 2050; these targets include transitioning to cleaner power and a more sustainable future, securing 440,000 well-paid jobs, and protecting the British consumer from global fossil fuels price spikes.1 The UK equity market certainly has some work to do, given its high weight in carbon-intensive sectors,…

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Feb 21, 2022

Oil, Gas, and ESG: S&P Europe 350 ESG Index Increased Sensitivity (or Lack Thereof)

Commodities crushed it in 2021, with stretched supply chains a driving factor. The strong performance didn’t stop as we entered 2022. In this blog, we specifically look at crude oil and natural gas, which have outperformed the European equity market by some distance since the start of 2021 (see Exhibit 1), and what this can…

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Nov 16, 2021

Can Equal Weight ESG Indices Pull Their Weight?

Research has shown that equally weighted indices have historically posted long-term outperformance1 over their benchmarks—largely driven by their exposures to small size and value along with associated risk premia, in addition to a healthy dose of concentration reduction.2 However, in accessing compensated factors and reducing concentration, the S&P 500® Equal Weight Index could elicit some…

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Oct 29, 2021

Net Zero Index Strategies for Developed Markets

The S&P PACTTM Indices (S&P Paris-Aligned & Climate Transition Indices) comprise the S&P Climate Transition (CT) Indices and the more ambitious S&P Paris-Aligned (PA) Indices. These indices are intended to meet the EU’s minimum standards for EU Climate Transition benchmarks and EU Paris-aligned benchmarks under the Regulation (EU) 2016/1011 (EU Benchmark Regulation). The indices follow…

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Feb 17, 2021

S&P PACT Indices Sector Weight Explanation in Developed and U.S. Markets

In April 2020, we launched the S&P PACTTM (Paris-Aligned & Climate Transition) Indices. The indices aim to align with a 1.5oC climate scenario, the EU’s minimum standards for EU Climate Transition Benchmarks and EU Paris-Aligned Benchmarks, and the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), while maintaining a broad, diversified exposure. The…

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Dec 10, 2020

What Drives the S&P PACT Indices’ Weights?

In April 2020, we launched the S&P PACTTM Indices (S&P Paris-Aligned & Climate Transition Indices). The indices aim to align with the following: a 1.5oC climate scenario, the relevant aspects of the EU Low Carbon Benchmark regulation (BMR), and recommendations from the Task Force on Climate-related Financial Disclosures (TCFD), while maintaining a broad, diversified exposure….

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Jun 17, 2020

Is ESG a Factor? The S&P 500 ESG Index’s Steady Outperformance

Since launching the S&P ESG Index Series, we have been continuously asked the same question: Can environmental, social, and governance (ESG) be considered a factor that outperforms? In short, since its launch in January 2019, the S&P 500® ESG Index has outperformed (see Exhibit 1). We further analyzed the performance characteristics of the S&P 500…

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Mar 16, 2020

The S&P Eurozone Paris-Aligned Climate Index Concept: A Greenwashing Minimization Approach to High Climate Impact Sector Neutrality

In January 2020, S&P Dow Jones Indices released a paper for the S&P Eurozone Paris-Aligned Climate Index Concept (PAC Concept). The PAC Concept aims to align with the proposals of the EU Technical Expert Group on Sustainable Finance (TEG), as published in its Final Report on Climate Benchmarks and Benchmarks’ ESG Disclosure dated September 2019,1…

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