Tag Archives: low carbon

Jul 8, 2019

Understanding the ESG Consequences of Factor-Based Investing: Part 1

    “Sustainable investing must go mainstream. Fortunately, the momentum is growing.” – Mark Carney Mark Carney’s statement underpins the sentiment of the investment community, where environmental, social, and governance (ESG) considerations have entered the forefront of investors’ priorities. Whether factor indices have ESG principles integrated or not, understanding a factor’s influence on ESG characteristics,…

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Jan 16, 2019

What Is the Impact of a Company’s Environmental Data on its Weight in an Index?

One of the key objectives for the recently launched S&P/JPX Carbon Efficient Index is to motivate companies within the baseline index, TOPIX, to increase their level of environmental disclosure. By incorporating a mechanism to adjust constituent weights by their respective environmental data, the S&P/JPX Carbon Efficient Index has been designed to incentivize all companies, regardless…

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Oct 1, 2018

Steps Toward a Low-Carbon Economy: From Footprints to Forward Estimates of Earnings at Risk

The landmark Paris Agreement to accelerate the transition to a low-carbon economy marked a sea change in the global fight against climate change. A swelling tide of carbon-limiting regulations has since emerged, shifting the narrative from a largely ethical debate to a material set of risks and opportunities for the financial markets, today. As the…

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Mar 14, 2017

Will Low-Carbon Trends in the U.S. Continue?

When people think of a low-carbon economy, the U.S. may not be the first one to come to mind.  In almost all things ESG, Europe is considered the leader.  However, the U.S. market has made some strides in recent years.  The carbon footprint of the S&P 500® has actually been declining since 2011, as illustrated…

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