LONDON and NEW
YORK, Feb. 28, 2023 /PRNewswire/ -- S&P
Dow Jones Indices ("S&P DJI"), the world's leading index
provider, has launched a first-of-its kind commodities index which
incorporates environmental metrics. The S&P GSCI Climate
Aware is a broad-based commodity index which is intended to
offer market participants with ongoing exposure to the global
commodities sector that is in line with its parent benchmark, the
S&P GSCI.
However, through the application of environmental factors in its
rules-based methodology, the S&P GSCI Climate Aware index is
unique because it reallocates the weights of its constituents away
from higher-intensity fossil fuels and shifts them to commodities
that are crucial to the global energy transition while maintaining
an allocation to the food commodities that sustain life.
"As a pioneer in developing sustainability-oriented benchmarks
for more than two decades, S&P Dow Jones Indices is proud to
offer this innovative index that reflects the growing market
appetite and opportunity to incorporate environmental criteria in
the global commodities sector," said Fiona Boal, Head of Commodities and Real Assets
at S&P DJI. "For more than 30 years, the S&P GSCI has
been widely regarded as the leading measure of global commodity
prices and source for unparalleled commodities insights. The
S&P GSCI Climate Aware index addresses the goals of our
customers and market participants who continue to seek broad-based
commodities market exposures to manage inflationary risks and for
diversification purposes, while improving their environmental
footprints," Boal added.
With the S&P GSCI as its starting index universe, the
S&P GSCI Climate Aware index uses index optimization, an
approach whereby a mathematical model is used to select the best
combination of constituents according to certain predefined
objectives. Through this approach, the S&P GSCI Climate Aware
index seeks to achieve a similar level of diverse and broad
exposure to the commodities market and maintain index replicability
and liquidity.
The S&P GSCI Climate Aware index utilizes the S&P Global
Commodity Environmental dataset developed by S&P Global
Sustainable1.The dataset provides commodity-level physical and
financial impact data on greenhouse gas emissions, water
consumption and land use for all the constituents of the S&P
GSCI.
More specifically, the S&P GSCI Climate Aware index seeks to
achieve a 25% reduction in environmental impact per dollar invested
compared to the S&P GSCI, along with a 5% year-on-year
decarbonization target, while maintaining total food production and
ensuring land and water environmental impacts are no higher than
the S&P GSCI.
"S&P Global Sustainable1 has developed the S&P Global
Commodity Environmental dataset covering a range of agricultural,
energy, precious metal, and industrial metal commodities to support
the need for increased transparency on environmental factors across
commodity value chains. The dataset enables investors and
corporates to understand and quantify the environmental risks and
opportunities of specific commodities, as well as across
portfolios, indices, and benchmarks," said Steve Bullock, Managing Director, Global Head of
Research and Methodology, S&P Global Sustainable1.
S&P DJI collaborated with J.P. Morgan to publish a research
report to study the application of environmental criteria on
commodities benchmarks. The research is available here.
With the launch of this climate aware commodity index, S&P
DJI adds to its wide range of broad market, thematic and targeted
global sustainability and environmental, social and governance
(ESG) indices such as the S&P 500 ESG Index, as well as more
specific environmental and climate-focused benchmarks such as the
S&P Paris-Aligned and Climate Transition (PACT) indices.
The S&P GSCI Climate Aware index's methodology is published
and available at S&P DJI's website here and more
information on the S&P Global Commodity Environmental dataset
can be found here.
ABOUT S&P DOW JONES INDICES
S&P Dow Jones Indices is the largest global resource for
essential index-based concepts, data and research, and 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.
S&P Dow Jones Indices is a division of S&P Global (NYSE:
SPGI), which provides essential intelligence for individuals,
companies, and governments to make decisions with confidence. For
more information,
visit https://www.spglobal.com/spdji/en/.
ABOUT S&P GLOBAL SUSTAINABLE1
S&P Global Sustainable1 is the central source for
sustainability intelligence from S&P Global. Sustainable1
matches customers with the sustainability products, insights and
solutions from across S&P Global's divisions to help meet their
unique needs. Our comprehensive coverage across global markets
combined with in-depth sustainability intelligence provides
financial institutions, corporations and governments with expansive
insight on business risk, opportunity, and impact as we work
towards a sustainable future. Our data and well-informed point of
view on critical topics like energy transition, climate resilience,
positive impact and sustainable finance allow us to go deep on the
details that define the big picture so customers can make decisions
with conviction. For more information,
visit https://www.spglobal.com/esg/.
FOR MORE INFORMATION:
S&P DOW JONES INDICES
spdji.comms@spglobal.com
April Kabahar
Global Head of Communications
(+1) 212-438-7530
april.kabahar@spglobal.com
Alyssa Augustyn
Americas Communications
(+1) 773-919-4732
alyssa.augustyn@spglobal.com
Asti Michou
EMEA Communications
(+44) 7970 887 863
asti.michou@spglobal.com
Nadja Jiang
APAC Communications
(+852) 9860 2162
nadja.jiang@spglobal.com
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SOURCE S&P Dow Jones Indices