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Qontigo Launches First EU-Compliant Climate Benchmark Indices

Datum: 02. Jul 2020 | Deutsche Börse

Qontigo Launches First EU-Compliant Climate Benchmark Indices

STOXX PAB and STOXX CTB Index families align with EU Regulatory objectives to reduce global warming and decarbonize

Qontigo announced today the launch of two new families of Climate Indices: the STOXX Paris-Aligned Benchmark (PAB) Indices and the STOXX Climate Transition Benchmark (CTB) Indices. These indices help reduce exposure to climate-related financial risks and include companies that are well-positioned to provide solutions needed to transition to a low-carbon economy. 

The new PAB Benchmarks and CTB Benchmarks track the performance of liquid securities from a selection of underlying STOXX Benchmark indices. Both comply with, and exceed, the CTB and PAB requirements as laid out by the European Commission’s Technical Expert Group (TEG) Final Report. The Climate Benchmark Regulation is part of the European Commission’s Action Plan on financing sustainable growth. The indices were constructed in collaboration with ISS ESG and Sustainalytics, two of the leading providers of sustainability data.

“The launch of the CTB and PAB Climate Benchmarks reflects Qontigo’s commitment to being at the forefront of sustainable investing,” said Sebastian Ceria, Chief Executive Officer of Qontigo. “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. Qontigo will continue to advance sustainable investing with investor-centric index solutions that are rules-based, transparent and that go beyond minimum requirements.”

“We are pleased to partner with Qontigo by delivering our industry leading climate data and analytics for this new series of climate-focused STOXX indices,” said Marija Kramer, Head of ISS ESG, the responsible investment arm of Institutional Shareholder Services. “These important new offerings will significantly aid institutional investors seeking to provide beneficiaries greater choice when it comes to climate-conscious portfolios.”

Although both have similar objectives, the CTB Benchmarks are specifically targeted toward a decarbonization trajectory, while the PAB Benchmarks have even stricter requirements around energy efficiency that coincide with the long-term global warming target of the Paris Climate Agreement. 

Companies identified as non-compliant based on Sustainalytics’ Global Standards Screening (GSS) assessment or are involved in Controversial Weapons or Tobacco Production are not eligible for index selection.

Each of the STOXX PAB and the STOXX CTB families covers the following benchmarks:

  • EURO STOXX® Paris-Aligned Benchmark
  • EURO STOXX® Total Market Paris-Aligned Benchmark
  • STOXX® Europe 600 Paris-Aligned Benchmark
  • STOXX® Global 1800 Paris-Aligned Benchmark
  • STOXX® USA 500 Paris-Aligned Benchmark
  • STOXX® USA 900 Paris-Aligned Benchmark
  • EURO STOXX® Climate Transition Benchmark
  • EURO STOXX® Total Market Climate Transition Benchmark
  • STOXX® Europe 600 Climate Transition Benchmark
  • STOXX® Global 1800 Climate Transition Benchmark
  • STOXX® USA 500 Climate Transition Benchmark
  • STOXX® USA 900 Climate Transition Benchmark


Qontigo was recently named ESG Index Provider of the Year by Environmental Finance.


About Qontigo
Qontigo is a financial intelligence innovator and a leader in the modernization of investment management, from risk to return. The combination of the company’s world-class indices and best-of-breed analytics, with its technological expertise and customer-driven innovation enables its clients to achieve competitive advantage in a rapidly changing marketplace. Qontigo’s global client base includes the world’s largest financial products issuers, capital owners and asset managers. Created in 2019 through the combination of STOXX, DAX and Axioma, Qontigo is part of Deutsche Börse Group, headquartered in Eschborn with key locations in New York, Zug and London.
www.qontigo.com


About STOXX
STOXX Ltd. is Qontigo’s global index provider, currently calculating a global, comprehensive index family of over 10,000 strictly rules-based and transparent indices. Best known for the leading European equity indices EURO STOXX 50, STOXX Europe 50 and STOXX Europe 600, STOXX Ltd. maintains and calculates the STOXX Global index family which consists of total market, broad and blue-chip indices for the regions Americas, Europe, Asia/Pacific and sub-regions Latin America and BRIC (Brazil, Russia, India and China) as well as global markets. STOXX is the administrator of the STOXX® and DAX® indices under the European Benchmark Regulation and exercises control over all benchmark administration processes within Qontigo.
STOXX indices are licensed to more than 600 companies around the world as underlyings for Exchange Traded Funds (ETFs), futures and options, structured products and passively managed investment funds.
www.stoxx.com


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STOXX, Qontigo GmbH, Qontigo Index GmbH, Deutsche Boerse Group and their licensors, research partners or data providers do not make any warranties or representations, express or implied, with respect to the timeliness, sequence, accuracy, completeness, currentness, merchantability, quality or fitness for any particular purpose of its index data and exclude any liability in connection therewith. STOXX, Qontigo GmbH, Qontigo Index GmbH, Deutsche Boerse Group and their licensors, research partners or data providers are not providing investment advice through the publication of indices or in connection therewith. In particular, the inclusion of a company in an index, its weighting, or the exclusion of a company from an index, does not in any way reflect an opinion of STOXX, Qontigo GmbH, Qontigo Index GmbH, Deutsche Boerse Group or their licensors, research partners or data providers on the merits of that company. Financial instruments based on the STOXX® indices, DAX® indices or on any other indices supported by STOXX are in no way sponsored, endorsed, sold or promoted by STOXX, Qontigo GmbH, Qontigo Index GmbH, Deutsche Boerse Group or their licensors, research partners or data providers.