S&P Dow Jones Indices has announced the launch of the S&P Net Zero 2050 Climate Transition Select Index Series and S&P Net Zero 2050 Paris-Aligned Select Index Series.
S&P says the indices measure the performance of a targeted number of the largest float-adjusted market capitalization companies designed to be collectively compatible with a 1.5ºC global warming climate scenario. Companies that are involved in controversial weapons and tobacco business activities, ESG controversies and are non-compliant with the United Nations Global Compact (UNGC) principles are excluded.
The indices are aligned with the European Union’s minimum standards for low carbon benchmarks under Regulation.
“We are very excited to extend our S&P Net Zero 2050 ESG index offering to include indices which bring greater transparency in measuring climate-related risks and that have been designed to cater to the structured product market. S&P DJI is committed to helping our customers and market participants address climate change and achieve their goals in the path to net zero by 2050,” said Jaspreet Duhra, Global Head of ESG Indices at S&P Dow Jones Indices.