STOXX Licenses Next Generation Of Low Carbon Indices To Scandinavian Asset Owner
Andreas von Brevern
Phone: +49 (0) 69 211 14284
STOXX LICENSES NEXT GENERATION OF LOW CARBON INDICES TO SCANDINAVIAN ASSET OWNER
ZURICH (March 7, 2017) - STOXX Ltd., the operator of Deutsche Boerse Group’s index business, and a global provider of innovative and tradable index concepts, today introduced the STOXX Climate Impact and STOXX Climate Awareness Indices. This next generation of low carbon indices incorporates the CDP climate change scoring methodology which evaluates companies based on their progress in the transition towards a low carbon economy.
The STOXX Global Climate Impact ex Global Compact, Controversial Weapons, Tobacco Index has been licensed to the Finnish Varma Mutual Pension Insurance Company (`Varma`) for benchmarking purposes. This index includes only companies that show strong environmental stewardship as they have climate actions implemented.
“These indices mark a new step in the low carbon investment, as they take into account the forward-looking data used in the CDP Scoring Methodology, focusing on companies’ climate-related financial disclosures in areas like governance, strategy, risk management, targets and opportunities. This is in line with the recommendations of the Task Force on Climate-related Financial Disclosures,” said Matteo Andreetto, chief executive officer, STOXX Limited. “By contrast, the low carbon indices available in the market so far are solely based on historical carbon footprint data.”
Reima Rytsölä, chief investment officer at ‘Varma’ said: “Climate change is one of the most significant factors that investors must prepare for in the long term. We are committed to developing our investment operations so that our investments and investment processes comply with the 2-degree target.”
The new STOXX Climate Indices complement and extend the STOXX Global Climate Change Leaders Index that was based on the CDP A-List. The new indices include the first three levels of the CDP climate change scoring methodology: Leadership, Management and Awareness. They are price-weighted with a weight factor based on the free-float market capitalization, multiplied with the corresponding Z-score carbon intensity factor of each constituent. They are calculated in price, net return as well as gross return versions and are available in euros and US dollars. All components are subject to a cap of 5 %. The indices are reviewed quarterly.
The base date is December 24, 2012, with the base value set at 100. The data for the Global Compact and Controversial Weapons exclusions is provided by Sustainalytics.
Please visit www.stoxx.com/lowcarbon for further information.
Andreas von Brevern, firstname.lastname@example.org, Phone: +49 69 211 14284
Note to Editors:
About STOXX Limited
STOXX Ltd. is a global index provider, currently calculating a global, comprehensive index family of over 7,500 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.
To provide market participants with optimal transparency, STOXX indices are classified into three categories. Regular “STOXX” indices include all standard, theme and strategy indices that are part of STOXX’s integrated index family and follow a strict rules-based methodology. The “iSTOXX” brand typically comprises less standardized index concepts that are not integrated in the STOXX Global index family, but are nevertheless strictly rules-based. While indices that are branded “STOXX” and “iSTOXX” are developed by STOXX for a broad range of market participants, the “STOXX Customized” brand covers indices that are specifically developed for clients and do not carry the STOXX brand in the index name.
STOXX indices are licensed to more than 500 companies around the world as underlyings for Exchange Traded Funds (ETFs), futures and options, structured products and passively managed investment funds. Three of the top ETFs in Europe and approximately 25% of all assets under management are based on STOXX indices. STOXX Ltd. holds Europe's number one and the world's number two position in the derivatives segment.
STOXX is part of Deutsche Boerse Group, and also markets the DAX indices. www.stoxx.com
STOXX, 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, 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, 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, Deutsche Boerse Group or their licensors, research partners or data providers.
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