Financial market index provider S&P Dow Jones Indices has announced its website will publish carbon metrics alongside financial metrics for all its equity indices.
In a statement released yesterday, S&P Dow Jones said growing importance of “carbon considerations” was driving its decision to publish the metrics, which utilises data from Trucost, on its website.
“The initiative is part of S&P DJI’s commitment to support ESG transparency enabling market participants to understand, measure and manage carbon risk,” the statement said.
S&P Dow Jones Indices senior director of strategy and ESG indices Hannah Skeates said carbon metrics were “likely to become commonplace”.
“Once market participants understand their carbon exposure, they can begin to find solutions to manage this exposure and potential risk,” Ms Skeates said.
“Whether reducing carbon exposure through a broad market low carbon strategy, or via fossil fuel divestment, S&P Dow Jones Indices has indices – and the carbon metrics to measure it.”
According to the statement, the three carbon metrics published on the website are:
In comparing the returns of six versions of the S&P 500 Index in a report titled Stepping Up to Carbon Transparency, S&P Dow Jones argued against the myth that low-carbon indexes delivered lower returns.
“The low-carbon versions of the S&P 500 actually outperformed the benchmark over the five-year period,” the report said.
In December last year, NAB Asset Servicing also launched a tool allowing clients to assess the carbon intensity of their investments.
The Federal Court has refused to approve a multimillion-dollar penalty for a major bank, despite the bank admitting wrongdoing. ...
Nine Australian funds are among the world’s 100 biggest asset owners, according to a new report from Willis Towers Watson’s Thinking Ahe...
All four major banks have staunchly defended their vertically integrated models, arguing that a conflicted ‘one-stop shop’ approach to a...