Wilshire, along with Nikkei and Hang Seng, has announced the launch of a series of three climate indexes.
The new indexes are:
FT Wilshire US Large Cap Climate Change 1.5°C Target Index
Nikkei 225 Climate Change 1.5°C Target Index
Hang Seng Climate Change 1.5°C Target Index
The index methodology is constructed with the aim to meet EU Paris Aligned Benchmark (PAB) standards. Constructed with the target to align to the minimum standards of the EU Paris-aligned Benchmark requires the constituents of a portfolio to:
- At least a 7% on average annual reduction in greenhouse gas (GHG) emissions
- At least a 50% reduction in GHG emissions intensity compared to the underlying index
- Incorporates the EU Taxonomy “Do No Significant Harm” (DNSH) criteria to provide an additional screening option of green exposure
- Remaining constituents are then weighted based on their Greenhouse Gas (GHG) Emission Intensities