The Church of England Pension Board will allocate £600 million to the new FTSE TPI Climate Transition Index.
The index has been created in collaboration with The Church of England Pensions Board and the Transition Pathway Initiative (TPI) and is the first global index that enables passive funds to capture company alignment with climate transition. It combines FTSE Russell and TPI analysis on company exposure to five climate considerations:
• Fossil fuel reserves: Underweight companies with fossil fuel reserves
• Carbon emissions: Over/underweight companies according to their greenhouse gas emissions whilst applying sector neutrality
• Green revenues: Overweight companies generating revenues from the global green economy
• Management quality: Over/underweight companies based on the extent to which they are managing the risks and opportunities related to the low-carbon transition and how they are addressing key aspects of the Taskforce on Climate-related Financial Disclosures (TCFD)
• Carbon performance: Over/underweight companies according to the extent to which they are committed to carbon emissions pathways that are aligned with 2°C /1.5°C warming scenarios