Index Finder

For climate-focused investors seeking to align with the guidelines set out by the Paris Agreement to achieve net zero emissions by 2050, we offer a robust and growing series of market indices. The S&P PACT™ Indices (S&P Paris-Aligned & Climate Transition Indices) incorporate the European Union's requirements for Low Carbon Benchmarks and utilize robust datasets and science-based assessments of companies’ climate risks and opportunities.

Read on to learn more about our net zero solutions, or download the S&P PACT Indices brochure.

Navigating Climate Risk with Indices

Learn about the philosophy, design, and powerful data inside the S&P PACT Indices—created for market participants looking to chart a path to net zero by 2050.

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Key Benefits of the S&P PACT Indices

  • Aligns with Paris Agreement

    Exceeds the requirements of the Paris Agreement and aligns with a 1.5°C trajectory enabling the achievement of net zero emissions by 2050.

  • Aligns with EU Low Carbon Benchmarks

    In line with the European Union Low Carbon Benchmark requirements and the recommendations of the Task Force on Climate-related Financial Disclosures.

  • Offers Broad Exposure

    Addresses numerous climate objectives efficiently, while staying as close to the benchmark index as possible with broad, diversified exposure.

What It Means to be Aligned with the EU Low Carbon Benchmark Regulation

The EU Low Carbon Benchmark regulation covers two benchmarks—the Paris-Aligned Benchmark (PAB) and Climate Transition Benchmark (CTB), both of which offer absolute alignment with a 1.5°C trajectory. The S&P PACT Indices include both Paris-Aligned and Climate Transition indices that align with the EU’s minimum standards for both PABs and CTBs.

What It Means to be Aligned with the EU Low Carbon Benchmark Regulation

Only high-level requirements stated here. Please refer to the EU CTB and PAB Label Requirements for further details. Information correct as of August 23, 2021. Chart is provided for illustrative purposes.

To learn how the S&P PACT methodology is designed to meet the goals of net zero strategies while serving up broad ESG coverage, and to find out how our Paris-Aligned and Climate Transition indices compare, read Net Zero and Broad ESG in One Index.

The Data Quality Imperative

Our indices go further than the EU Benchmark requirements by employing additional climate datasets, allowing us to better assess companies’ climate risks and opportunities.

Utilize forward-looking datasets to overweight companies on 1.5°C-aligned pathways, enabling the selection of companies that are in the process of decarbonizing, rather than relying solely on backward-looking data.
Reduce index exposure to the physical risks of climate change—ensuring holistic climate change risks are accounted for and allowing alignment with the TCFD.
Account for Scope 3 emissions from the outset, ensuring a more accurate reflection of corporate emissions.
Reduce exposure to fossil fuel reserves to lower stranded assets risk.
For the Paris-Aligned indices, provide higher exposure to companies with higher green-to-brown revenue share.
 

How data from S&P Global Trucost enhances the S&P PACT Indices

Overweight companies with better S&P DJI ESG Scores that may be better positioned to transition to a 1.5°C scenario, as identified by S&P Global ESG Research.

The Journey to Net Zero

Dive deep into the datasets powering the S&P PACT Indices—Scope 3, Paris alignment, and physical risk.

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Net Zero Solutions in Practice

Frequently Asked Questions

Learn more about the S&P PACT Indices and the methodologies and datasets behind them.

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What are the S&P PACT Indices?

The indices are designed to 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 of 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. The final delegated acts were published on Dec. 23, 2020.

How do these indices align with the goal of achieving net zero emissions by 2050?

The Intergovernmental Panel on Climate Change (IPCC) defines net zero emissions as achieved when anthropogenic emissions of greenhouse gases to the atmosphere are balanced by anthropogenic removals over a specified period. The S&P PACT Indices follow a 7% year-on-year decarbonization trajectory, which, according to the EU Technical Expert Group on Sustainable Finance (EU TEG), is required to meet the IPCC "1.5°C with no or limited overshoot" emissions scenario. This scenario should meet net zero emissions around 2050. As such, this index series is labeled "Net Zero 2050".

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