Qontigo unveils EU-compliant climate benchmarks
Qontigo, part of Deutsche Börse, has launched two families of climate indices. Both the Stoxx Paris-Aligned Benchmark (Stoxx PAB) and the Stoxx Climate Transition Benchmark (Stoxx CTB) indices aim to help investors trimming exposure to climate-related financial risks. Moreover, Qontigo's new climate indices are aligned with the requirements laid out by the European Commission’s technical expert group (TEG) final report.
The new benchmarks were built with sustainability data providers ISS ESG and Sustainalytics. They track the performance of liquid stocks from a selection of underlying Stoxx benchmark indices* and include companies that are well-positioned to provide solutions for the transition towards a low-carbon economy. Qontigo said the CTB Benchmarks are specifically targeted toward a decarbonisation trajectory, while the PAB Benchmarks have even stricter requirements around energy efficiency matching the global warming target set by the Paris Climate Agreement. Companies identified as non-compliant based on Sustainalytics’ global standards screening assessment or that are involved in controversial weapons or tobacco production are not eligible for index selection.
Commenting on the launch, Sebastian Ceria, chief executive officer of Qontigo, said: “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.”