S&P Dow Jones Indices debuts carbon metrics on indices
S&P Dow Jones Indices (S&PDJI) is now publishing carbon metrics on the majority of its equity indices, including the S&P Global 1200, S&P 500, Dow Jones Industrial Average and environmentally-focused indices including S&P Global 1200 Carbon Efficient Index Family and S&P Global 1200 Fossil Fuel Free Index Family.
S&P DJI is the first index provider to publicly display carbon metrics as standard alongside financial data on its indices on a monthly basis. The initiative is part of S&P DJI’s commitment to support ESG transparency enabling market participants to understand, measure and manage carbon risk.
There are three metrics currently available for the indices, using Trucost data and analysis: Carbon Footprint – the metric tons of CO2e (carbon dioxide equivalent) per USD1 million invested against the index; Carbon Efficiency – the metric tons of CO2e per USD1M of a company’s revenues against the index; and Fossil Fuel Reserves – the greenhouse gas emissions that could be generated if the proven and probably fossil fuel reserves owned by constituents were burned, per USD1M invested
Hannah Skeates, Senior Director, Strategy and ESG Indices, S&P Dow Jones Indices says: “As we move towards a low and zero carbon global economy, having carbon metrics as standard is likely to become commonplace. Once market participants understand their carbon exposure, they can begin to find solutions to manage this exposure and potential risk. 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. We are very excited to be at the forefront of bringing this level of transparency and information to the marketplace.”