S&P launches net-zero indices

Designed as underlying indices for the structured product market

S&P Dow Jones Indices has announced the launch of a net zero index series designed to measure the performance of companies in a global warming scenario of above 1.5 degrees.

The firm has unveiled the S&P Net Zero 2050 Climate Transition Select Index Series and S&P Net Zero 2050 Paris-Aligned Select Index Series, which have been specifically designed as underlying indices for the structured product market.

See also: – First ESG structured product launches

They will measure the performance of a targeted number of the largest float-adjusted market capitalisation companies designed to be collectively compatible with a 1.5ºC global warming climate scenario. Companies involved in controversial weapons and tobacco business activities, ESG controversies and are non-compliant with the United Nations Global Compact (UNGC) principles are excluded.

Jaspreet Duhra, global head of ESG indices at S&P Dow Jones Indices, commented: “We are very excited to extend our S&P Net Zero 2050 ESG index offering to include indices which bring greater transparency in measuring climate-related risks and that have been designed to cater to the structured product market. S&P DJI is committed to helping our customers and market participants address climate change and achieve their goals in the path to net zero by 2050.”

S&P previously launched the S&P Net Zero 2050 Climate Transition Select and S&P Net Zero 2050 Paris-Aligned Select for S&P Eurozone 50, S&P France 20, and S&P EuroUSAJapan 100, and plans to launch additional indices based on more regional benchmarks in the future.