Tag Archives: PACT
Net Zero: Time Is of the Essence
This blog was co-authored by Reid Steadman and Fred Samama. At Glasgow’s COP26, banks, insurers and investors representing USD 130 trillion in private capital made a historic commitment through the Glasgow Financial Alliance for Net Zero (GFANZ) to achieve net zero emissions by 2050 at the latest,1 mirroring government pledges. The question remains how to…
Data Driving the Weights within the S&P 500 Net Zero 2050 Paris-Aligned ESG Index
The World Meteorological Organization estimates that there is a 50% chance that global warming will exceed 1.5°C before 2026.1 The International Panel on Climate Change has warned that time is running out—climate change is no longer a problem for the future, and its associated physical risks are materializing more evidently.2 The world may need to…
The S&P PACT Indices: Leading the Net Zero Charge for Two Years
Two years is a long time in the sphere of ESG. While the world wrestled with the worst pandemic in a century, S&P Dow Jones Indices (S&P DJI) shook the ESG indexing space and cemented its position as a leader in climate indices. April 20, 2022, marks the two-year anniversary of the launch of the…
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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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An ESG Solution for Varying Objectives: S&P 500 ESG-Based Indices
When it comes to ESG indices, different objectives require different solutions. Indices can range from simple to sophisticated, concentrated to benchmark-like, broad environmental, social and governance to climate-focused, and more. Our growing suite of ESG indices aims to serve a wide range of ESG needs and support the alignment of investments with ESG principles. When…
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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,…
Did COP26 deliver?
This piece originally appeared on Risk.net. The dust has now settled on the 2021 UN Climate Change Conference (COP26). Did the gathering of almost 200 nations succeed in putting us on a path towards limiting warming to 1.5°C? COP26 concluded with the signing of the Glasgow Pact, which agreed to “keep 1.5°C alive.” Some of…
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Resilience to Rising Carbon Prices: Do Eurozone S&P PACT Indices Stand the Test?
“Code red for humanity.” That’s how the imminent effects of climate change were described by the UN.1 Human-induced global warming stands at 1.1°C above pre-industrial levels, and will likely reach more than 2.7°C by 2100.2 If the world is to achieve the goals of the Paris Agreement and limit global warming to 1.5°C, decarbonization is…
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Why COP Matters to Everyone
1.5°C, net zero emissions, COP, Glasgow, Paris, carbon offsets, stranded assets… Or… as Greta might say “blah blah blah.”1 With so much information, it’s easy to tune out to the noise of climate change. From the heatwaves of California,2 to the climate protesters in London,3 to the floods in Bangladesh,4 climate change is affecting everyone….
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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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