S&P Dow Jones starts publishing carbon metrics on most equity indexes

By Angela McDaniels

Tacoma, Wash., Oct. 30 – S&P Dow Jones Indices is now publishing carbon metrics on the majority of its equity indexes, including the S&P Global 1200 index, the S&P 500 index, the Dow Jones industrial average and environmentally focused indexes including the S&P Global 1200 Carbon Efficient index family and the S&P Global 1200 Fossil Fuel Free index family.

The company is the first index provider to publically display carbon metrics as standard alongside financial data on its indexes on a monthly basis, according to a company news release.

There are three metrics currently available for the indexes, using Trucost data and analysis:

• Carbon footprint, or the metric tons of carbon dioxide equivalent per $1 million invested against the index;

• Carbon efficiency, or the metric tons of carbon dioxide equivalent per $1 million of a company’s revenues against the index; and

• Fossil fuel reserves, or the greenhouse gas emissions that could be generated if the proven and probable fossil fuel reserves owned by constituents were burned, per $1 million invested.

“As we move towards a low- and zero-carbon global economy, having carbon metrics as standard is likely to become commonplace,” Hannah Skeates, senior director of strategy and ESG indexes, said in the news release.

“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.”

New York-based S&P Dow Jones Indices is part of McGraw Hill Financial.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.