S&P Dow Jones launches 3 climate change indices

S&P Dow Jones Indices (S&P DJI) and the Toronto Stock Exchange have announced the launch of three climate change index series for Canada: S&P/TSX 60 Carbon Efficient Index, S&P/TSX 60 Carbon Efficient Select Index and S&P/TSX 60 Fossil Fuel Free Index.

All three indices are derived from the constituents of the S&P/TSX 60.

The S&P/TSX 60 Carbon Efficient Index is designed to measure the performance of companies in the S&P/TSX 60 while overweighting/underweighting those companies that have lower/higher levels of carbon emissions.

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The S&P/TSX 60 Carbon Efficient Select Index is designed to measure the performance of companies in the S&P/TSX 60 while excluding those companies with the largest relative carbon footprint. The index is optimized so that it closely tracks the returns of the S&P/TSX 60. The Carbon Footprint for both of the S&P/TSX 60 Carbon Efficient Index and the S&P/TSX Carbon Efficient Select Index is defined as the company’s annual greenhouse gas (GHG) emissions and is calculated by Trucost Plc, a London-based firm that develops and sells products and services that evaluate the environmental performance of companies.

The S&P/TSX 60 Fossil Fuel Free Index is designed to measure the performance of companies in the S&P/TSX 60 that do not own fossil fuel reserves. RobecoSAM, an investment specialist focused exclusively on sustainability investing, conducted the research for ownership of fossil fuel reserves.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.