Tag Archives: Net Zero
Where’s Your Carbon Gone? How the S&P PACT Indices Decarbonize
As the world aims to decarbonize toward a net zero future, the importance of tracking the carbon footprint of portfolios is becoming a primary focus for many investors; specifically, to measure and understand whether portfolios emulate the emission reduction targets needed globally to help mitigate the impacts of climate change. For investors, tracking an EU…
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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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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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Exploring the Path to Net Zero in China’s Greater Bay Area
How can indices help inform investors charting a course for net zero? Priscilla Luk of S&P DJI joins Dr. Qu Kang of Bank of China Hong Kong to discuss the potential role of index-based innovations in regional carbon reduction initiatives and what these developments could mean for the potential opportunity set.
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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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Net-Zero Targets and Temperature Alignment: Two Sides of the Same Coin?
For many people, a new year represents a chance to set new objectives and to tick (or scrap) the previous year’s list of resolutions. Whether this objective-setting exercise works is debatable. A similar phenomenon might be observed within companies. Scientific consensus maintains that net-zero emissions should be reached by 2050 if the world is to…
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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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Results from the Recent S&P 500 Net Zero 2050 Paris-Aligned Sustainability Screened Index Rebalance
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 This includes…
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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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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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