Climate Transition Benchmarks

A climate benchmark is defined as an investment benchmark that incorporates specific objectives related to greenhouse gas (GHG) emission reductions and the transition to a low-carbon economy — based on the scientific evidence of the IPCC — through the selection and weighting of underlying constituents. These benchmarks are intended to serve as labels that qualify indices to enhance the ESG transparency of benchmark methodologies and an initiative to put forward standards for the methodology of low-carbon benchmarks. These benchmarks are often employed by investors, financial institutions, and sustainability rating agencies to evaluate how well companies are aligning with climate-related goals. In Europe, we have the EU Climate Transition Benchmark (EU CTB).

EU CTB