The iSTOXX Global Climate Change ESG Index is based on liquid securities from the STOXX Global 1800 Index. The index is constructed to follow the EU Paris-aligned Benchmark (EU PAB) requirements outlined in the Commission Delegated Regulation (EU) 2020/1818 supplementing Regulation (EU) 2016/1011 of the European Parliament and of the Council as regards minimum standards for EU Paris-aligned Benchmarks.
Companies identified as non-compliant based on Sustainalytics Global Standards Screening (GSS) assessment, are involved in Controversial Weapons or display a Severe (Category 5) Controversy Rating, as identified by Sustainalytics are not eligible for selection. Tobacco Producers, as identified by ISS ESG, are also not eligible. Securities that generate revenues above a certain threshold from coal, oil and gas exploration or processing activities are excluded. Additionally, securities that derive more than 10% of their revenues from thermal coal-based power generation, or more than 50% from power generation with carbon intensity of lifecycle emissions higher than 100gCO2e/kWh are not considered for selection. Furthermore, STOXX will exclude companies that ISS ESG assesses to have Significant Obstruction in the UN SDG 12,13,14,15 or have involvement in the production of military equipment and/or the provision of related services.
The weighing process follows an optimization process to meet the minimum requirements detailed in the delegated act. The Index aims to reduce its greenhouse gas intensity by at least 50% when compared to their underlying benchmark. it is also designed to meet the year on year 7% decarbonization target.
High climate impact sector weights of the Index are not underweighted relative to the underlying benchmark. The Index also overweighs securities with Science Based Targets, as verified by the Science Based Target initiative (SBTi).
Index Guides, Benchmark statement, and other reports are available under the Data tab.
Top 10 Components
|TESLA||Automobiles and Parts||US|
|ALPHABET CLASS C||Technology||US|
|VISA Inc. Cl A||Industrial Goods and Services||US|
|MasterCard Inc. Cl A||Industrial Goods and Services||US|
|META PLATFORMS CLASS A||Technology||US|
|LVMH MOET HENNESSY||Consumer Products and Services||FR|