Qontigo announced today the launch of two new families of Climate Indices: the STOXX Paris-Aligned Benchmark (PAB) Indices and the STOXX Climate Transition Benchmark (CTB) Indices. These indices help reduce exposure to climate-related financial risks and include companies that are well-positioned to provide solutions needed to transition to a low-carbon economy.
The new PAB Benchmarks and CTB Benchmarks track the performance of liquid securities from a selection of underlying STOXX Benchmark indices. Both comply with, and exceed, the CTB and PAB requirements as laid out by the European Commission’s Technical Expert Group (TEG) Final Report. The Climate Benchmark Regulation is part of the European Commission’s Action Plan on financing sustainable growth. The indices were constructed in collaboration with ISS ESG and Sustainalytics, two of the leading providers of sustainability data.
“The launch of the CTB and PAB Climate Benchmarks reflects Qontigo’s commitment to being at the forefront of sustainable investing,” said Sebastian Ceria, Chief Executive Officer of Qontigo. “As the transition to solutions that reflect investor’s views on sustainability accelerates, our new climate benchmarks offer an opportunity to track the rigorous approach adopted by the European Commission. As part of the overall Qontigo ESG Ecosystem, these indices act as building blocks to help investors integrate climate-change risks and opportunities into portfolios. Qontigo will continue to advance sustainable investing with investor-centric index solutions that are rules-based, transparent and that go beyond minimum requirements.”
“We are pleased to partner with Qontigo by delivering our industry leading climate data and analytics for this new series of climate-focused STOXX indices,” said Marija Kramer, Head of ISS ESG, the responsible investment arm of Institutional Shareholder Services. “These important new offerings will significantly aid institutional investors seeking to provide beneficiaries greater choice when it comes to climate-conscious portfolios.”
Although both have similar objectives, the CTB Benchmarks are specifically targeted toward a decarbonization trajectory, while the PAB Benchmarks have even stricter requirements around energy efficiency that coincide with the long-term global warming target of the Paris Climate Agreement.
Companies identified as non-compliant based on Sustainalytics’ Global Standards Screening (GSS) assessment or are involved in Controversial Weapons or Tobacco Production are not eligible for index selection.
Each of the STOXX PAB and the STOXX CTB families covers the following benchmarks:
- EURO STOXX® Climate Transition Benchmark
- EURO STOXX® Total Market Climate Transition Benchmark
- STOXX® Europe 600 Climate Transition Benchmark
- STOXX® Global 1800 Climate Transition Benchmark
- STOXX® USA 500 Climate Transition Benchmark
- STOXX® USA 900 Climate Transition Benchmark