The STOXX Climate Transition Benchmark and STOXX Paris-Aligned Benchmark indices range totals 12 products based on the EU’s Climate Transition (CTB) and EU-Paris Aligned (PAB) benchmarks.
This includes CTB and PAB indices based on the firm’s flagship products such as the Euro Stoxx 50 and Stoxx Europe 600.
Last September, the EU Commission’s Technical Expert Group (TEG) published a report which agreed the publication of two types of climate benchmarks; CTB and PAB.
CTB is specifically targeted towards a decarbonization trajectory while PAB has stricter requirements around energy efficiency and pushes towards the long-term global targets set in the Paris Climate Agreement.
Qontigo’s indices are designed to help reduce exposure to climate-related financial risks and include companies that are set to provide solutions needed to transition to a low-carbon economy.
Sebastian Ceria (pictured), CEO of Qontigo, commented: “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.”
Marija Kramer, head of Institutional Shareholder Services (ISS) ESG, added: “These important new offerings will significantly aid institutional investors seeking to provide beneficiaries greater choice when it comes to climate-conscious portfolios.”
Major index providers have all launched indices that are in line with the EU’s climate benchmarks including MSCI, Solactive, S&P Dow Jones Indices and FTSE Russell.
However, in May, smart beta index provider Scientific Beta highlighted “significant flaws” in the EU’s climate benchmarks in a letter to the European Commission.
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