Tag Archives: Carbon Emissions
Sustainability within the Modern Commodity Allocation – The S&P GSCI Light Energy Climate Aware Is Launched
After extensive market outreach, S&P Dow Jones Indices launched the S&P GSCI Light Energy Climate Aware to satisfy a need for a benchmark tied to sustainability and the energy transition, but with a lighter energy weighting than the new S&P GSCI Climate Aware. As can be seen in Exhibit 1, the S&P GSCI Light Energy…
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Results from the Recent S&P 500 Net Zero 2050 Paris-Aligned Sustainability Screened Index Rebalance (March 2023)
Narottama Bowden, The author would like to thank Clara Arganaraz, Index Manager of the S&P 500® Net Zero 2050 Paris-Aligned Sustainability Screened Index, for her contributions to this post. S&P Dow Jones Indices recently completed the rebalancing of all indices that aim to meet the minimum requirements for EU Climate Transition and EU Paris-Aligned Benchmarks.1…
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Introducing the First Benchmark Commodity Index Incorporating Environmental Metrics, the S&P GSCI Climate Aware
As the world continues to focus on sustainability and the energy transition, it is understandable that market participants are seeking to incorporate sustainability considerations into their commodities portfolios. To that end, on Feb. 23, 2023, S&P Dow Jones Indices (S&P DJI) launched the S&P GSCI Climate Aware, utilizing a new environmental dataset developed in collaboration…
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Reversing the Entropy of Climate Change
According to the second law of thermodynamics, the state of disorder or chaos of a system, also known as entropy, increases over time, defining the so-called arrow of time. Applying this analogy to Earth, is the world headed into chaos as climate change unfolds? Not necessarily. Just as entropy can decrease if useful work is…
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S&P 500 Decarbonization: Drawing the Path to Net Zero
As reported in S&P DJI’s Climate and ESG Index Dashboard, climate indices can include both absolute and benchmark-relative goals. Absolute goals could include, for example, a certain target level of weighted average emissions among index constituents, while a relative goal might insist on an improvement in comparison to a benchmark such as the S&P 500®….
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Understanding the Basics of Sustainability Part 2: Focusing on Net Zero
The increasing focus on sustainability inclusion is being reflected through the markets’ growing recognition of the financial materiality and impact of ESG issues on corporate balance sheets. Therefore, the range of ESG offerings has expanded to include indices that focus on climate change, carbon efficiency, fossil fuel free, and thematics, which include clean energy and…
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How Efficient Is the S&P/KRX Carbon Efficient Capped Index?
Following the South Korean government’s announcement of the Green New Deal in the summer of 2020, S&P Dow Jones Indices and the Korea Exchange (KRX) partnered to launch the S&P/KRX Carbon Efficient Capped Index on Nov. 16, 2020. The S&P/KRX Carbon Efficient Capped Index seeks to provide exposure to the Korean equities market, while also…
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S&P Dow Jones Indices Launches First Single-Commodity Carbon Emission Allowances Index
The S&P GSCI Carbon Emission Allowances (EUA) EUR represents an expansion of the single-commodity series of indices based on the S&P GSCI and is the first index of its kind in the market. The S&P GSCI Carbon Emission Allowances (EUA) EUR is designed to provide investors with a reliable and publicly available investment performance benchmark…
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Carbon Emissions History of the S&P 500® and its Sectors
Every year, Trucost and GreenBiz Group release their annual State of Green Business report, which gives an overview on the state of the sustainability movement and reviews 30 key indicators assessing corporate sustainability performance. As noted by Richard Mattison, CEO of Trucost, in a blog from earlier this month, the carbon emissions of the largest…
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Carbon Exposure of the S&P 500® Low Volatility Index
Understanding the carbon exposure of smart beta strategies is important for market participants who are already implementing factor strategies and wish to incorporate carbon risk into the investment process. In a previous blog, our analysis showed that factors such as low volatility and value may be predisposed to higher carbon emissions because of their sector…
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