S&P Carbon Control Indices
- Who is S&P Dow Jones Indices? S&P Dow Jones Indices (S&P DJI) is the largest global resource for essential index-based concepts, data, and research, and it is home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average®. S&P Dow Jones Indices has been a pioneer in environmental, social, and governance (ESG) indexing for more than 20 years, starting with the 1999 launch of the Dow Jones Sustainability World Index. Today, we offer an extensive range of indices to fit varying risk/return and ESG expectations, from core ESG and low-carbon climate approaches to thematic and fixed income ESG strategies.
- Who is S&P Global Trucost? S&P Global Trucost is a leader in carbon and environmental data and risk analysis and assesses risks relating to climate change, natural resource constraints, and broader ESG factors.
- Where does S&P DJI get its ESG data? S&P Global provides the data that powers the globally recognized Dow Jones Sustainability Indices (DJSI), S&P 500 ESG Index, and others in the S&P ESG Index Series. Each year, S&P Global conducts the Corporate Sustainability Assessment (CSA), an ESG analysis of over 11,000 companies. The CSA has produced one of the world’s most comprehensive databases of financially material sustainability information and serves as the basis for the scores that govern S&P DJI’s ESG indices.
- What are the S&P Carbon Control Indices? These indices are designed to measure the performance of eligible securities from an underlying benchmark index, selected and weighted to minimize the weighted average carbon intensity, subject to index active share, active industry group weight, active country weight, and diversification constraints. The indices also apply exclusions based on companies’ involvement in specific business activities, performance against the principles of United Nations’ Global Compact, involvement in relevant ESG controversies, and companies with low ESG scores relative to global averages in each Global Industry Classification Standard (GICS®) industry group.
- Why were the S&P Carbon Control Indices created? Each index in the series aims to (a) greatly reduce average carbon intensity of the underlying benchmark; (b) screen out companies that derive significant revenue from objectionable practices, industries, or product lines, as well as those identified as ESG laggards; and (c) offer broad diversification across a range of companies in the underlying index.
S&P CARBON CONTROL INDICES