Tag Archives: climate
An Index Approach to Fossil Fuel Reserves Divestment: Spotlight on the New S&P/TSX Composite Fossil Fuel Reserves Free Index
S&P Dow Jones Indices (S&P DJI) has been calculating indices designed to exclude companies with fossil fuel reserves since December 2011, when the S&P Global 1200 Fossil Fuel Reserves Free Index was launched. This index, along with its sub-indices such as the S&P 500® Fossil Fuel Reserves Free Index, measure the performance of companies in…
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Tilting toward Climate Resilience
In a previous blog, we delved into the S&P Global Sustainable1 Climate Action Framework, a powerful tool designed to gauge companies’ readiness for the low-carbon transition across three key pillars: Climate Governance and Strategy, Physical Risk Adaptation Strategy, and Climate Risk Mitigation and Alignment. In this blog, we introduce the recently launched S&P World Climate…
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Uncovering Companies’ Climate Resilience
Climate resilience refers to the ability of a system to anticipate, prepare for and respond to the impacts of climate change.1 As the world grapples with the adverse effects of a changing climate, climate resilience stands front and center in collective efforts from governments, corporations and the investment community2 alike. This blog is the first…
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Cutting Carbon without Changing Course: Net Zero Fixed Income Indices
S&P DJI recently expanded its range of S&P PACT™ Indices (S&P Paris-Aligned & Climate Transition Indices) to go beyond equity to now cover fixed income. Within these indices, the differences between the two asset classes in terms of the balance between cost (tracking error) and reward (sustainability profile) are material and highly thought-provoking. As shown…
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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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Climate Transition Indices, ESG, Index Construction, optimized weights, Paris Agreement, S&P PACT Indices, S&P UK Net Zero 2050 Paris-Aligned ESG Index, S&P/ASX 300 Net Zero 2050 Climate Transition ESG Index, S&P/ASX 300 Net Zero 2050 Paris-Aligned ESG Index, sustainability, Sustainable Investing, weight attribution
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- Climate Transition Indices, ESG, Index Construction, optimized weights, Paris Agreement, S&P PACT Indices, S&P UK Net Zero 2050 Paris-Aligned ESG Index, S&P/ASX 300 Net Zero 2050 Climate Transition ESG Index, S&P/ASX 300 Net Zero 2050 Paris-Aligned ESG Index, sustainability, Sustainable Investing, weight attribution
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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The Key to the S&P 500 ESG Index’s Outperformance: Avoiding the “Worst”
Now approaching its fourth anniversary since launch, the S&P 500® ESG Index seeks to reflect many of the attributes of the S&P 500 itself, while providing an improved sustainability profile as a result of an updated ESG score.1 With live performance data covering an extraordinary period—including two bear markets on either side of a growth…
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How to Bring Paris Agreement Goals to Fixed Income Indices
This blog was co-authored by Smadar Shulman and Paulina Lichwa-Garcia. As the transition to net zero is becoming a critical consideration in portfolio management, the popularity of indices that incorporate the EU’s minimum standards for Climate Transition Benchmarks (CTBs) and Paris-aligned Benchmarks (PABs) has been gathering pace. Such benchmarks aim to select securities that are collectively…
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Using Indices to Help Align ESG Goals and Values
Take a closer look at the importance of index construction and underlying data across the ESG spectrum with S&P DJI’s Ben Leale-Green. https://youtu.be/RXW5ytlfPsI
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Schrödinger’s Carbon: Intensity and Paris Alignment
In quantum mechanics, Schrödinger’s Cat refers to the paradoxical consequences of a thought experiment: can a cat be simultaneously dead and alive? A similarly counterintuitive phenomenon can be found in the context of climate-based analysis: whereby an index may boast a relatively low carbon intensity and yet, perhaps surprisingly, not be judged as aligned with…
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