- 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 is home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average®. More assets are invested in products based on our indices than products based on indices from any other provider in the world. Since Charles Dow invented the first index in 1884, S&P DJI has been innovating and developing indices across the spectrum of asset classes, helping to define the way investors measure and trade the markets.
- Who is Trucost? Trucost, a part of S&P Global, is a leader in carbon and environmental data and risk analysis and assesses risks relating to climate change, natural resource constraints, and broader environmental, social, and governance (ESG) factors. S&P DJI and Trucost have a long history of collaboration since launching the first S&P Carbon Efficient Index Series in 2009. Trucost was acquired by S&P Global in 2016.
S&P PARIS-ALIGNED & CLIMATE TRANSITION (PACT) INDICES
- What are the S&P Paris-Aligned & Climate Transition (PACT) Indices? The indices measure the performance of eligible equity securities from an underlying benchmark index, selected and weighted to be collectively compatible with a 1.5ºC global warming climate scenario and to meet several other climate-themed objectives at the index level, as at each rebalance. PA and CT stand for the S&P Paris-Aligned Climate Indices and S&P Climate Transition Indices, respectively.
- Why were the S&P PACT Indices created? The indices aim to incorporate: (a) factors that seek to manage transition risk, physical risk, and climate change opportunities, as proposed by the Financial Stability Board’s Task Force on Climate-related Financial Disclosure (TCFD); (b) the minimum standards for the EU Climate Transition Benchmarks (CTBs) and EU Paris-aligned Benchmarks (PABs), as proposed by the Technical Expert Group on Sustainable Finance (TEG) in its final report of September 2019; and (c) forward-looking scenario analysis. Note the proposals submitted by the TEG in the final report will serve as the basis for the European Commission to draft the delegated acts and therefore are subject to change. As of the date of publication of this FAQ (April 2020), the European Commission had not published the final delegated acts.