Creating Intelligent Climate Investment Solutions
STOXX Climate Indices are designed to facilitate the shift in investments towards a low-carbon economy and to align investments to the Paris Climate Agreement.
Part of the Qontigo ESG Ecosystem, the STOXX Climate Transition Benchmark Indices and STOXX Paris-Aligned Benchmark Indices are constructed to follow the EU Climate Benchmark1 (EU CTB and EU PAB) requirements. The indices encourage climate stewardship and corporate engagement in addition to meeting the regulatory requirements.
- STOXX Paris-Aligned Benchmark Indices (PAB) – These indices incorporate stringent carbon limitations in line with the overall long-term global warming target of the Paris Agreement2 and aim for 60% greenhouse gas (GHG) intensity reduction.
- STOXX Climate Transition Benchmark Indices (CTB) – These benchmarks allow more diversification and are designed to assist investors in the transition to a low-carbon economy by adopting a decarbonization trajectory. They aim for 40% greenhouse gas (GHG) intensity reduction.
STOXX’s CTB and PAB indices and underlying benchmark indices
EURO STOXX CTB
EURO STOXX PAB
STOXX Europe 600 CTB
STOXX Europe 600 PAB
EU climate benchmarks objectives
Superior design criteria sets STOXX indices apart
The construction of STOXX indices adds vital steps that emphasize the climate objectives
Scope 3 Inclusion3
Scope 3 data is used from inception to account for companies’ direct and indirect emissions
Sustainable Development Goals 13, Climate Action4
Securities that have significant obstruction to SDG 13 Climate Action are not eligible
Qontigo aspires to influence companies to set and have approved science-based targets and therefore only includes companies that will fulfill the Science-Based Targets initiative (SBTi) by March 2030 in the indices
Indices will reward energy-efficient companies that are ready to seize opportunities arising from the transition to a low-carbon economy, and those that are well-positioned to meet their carbon budget targets
Our open architecture allows us to integrate the world’s leading climate data from our data partner ISS ESG. This includes the most complete set of carbon data, science-based targets and emission scenarios, which are used to overweight climate leaders and underweight the laggards. In addition, the indices are screened for controversial activities involvement.
An Introduction to the STOXX Paris-Aligned Benchmark Indices
This paper illustrates the processes that Qontigo followed in constructing the STOXX Paris-Aligned Benchmark Indices, with specific focus on the STOXX® Europe 600 Paris-Aligned Benchmark Index, and the additional steps taken to reinforce the objectives of the EU PABs.Read More >
Learn more about STOXX Climate Transition Benchmark (CTB) and STOXX Paris-Aligned Benchmark (PAB) Indices or schedule a conversation about how these solutions can help your investment strategy.
1 EU Technical Expert Group Report on Climate Benchmarks and Benchmarks´ ESG Disclosures, September 2019
2 Paris Agreement, December 2015
3 Technical Guidance for Calculating Scope 3 Emissions
4 Only applicable to STOXX PAB Indices