Danish labour-market pension fund PenSam has used S&P Dow Jones Indices to create a bespoke climate-focused index for its sole use – a product PenSam said will allow it to meet its climate goals in a credible way.
The index provider said today that PenSam was using its newly-launched beS&P Index offering – which lets clients collaborate with the firm to develop index-based solutions.
It said it was working with the DKK178bn (€28.9bn) pension fund on a tailored version of one of its carbon budget indices – an index range launched in 2022.
Theses indices use a defined level of carbon budget based on the United Nations’ Intergovernmental Panel on Climate Change’s (IPCC) findings about the level of worldwide emissions necessary to limit global temperature increases to 1.5ºC compared to pre-industrial levels, S&P DJI said.
Claus Jørgensen, chief investment officer at PenSam, said: “S&P DJI has been able to accommodate all our specific needs and a high degree of customisation.”
“The carbon budget indices, along with customisation, allow PenSam to achieve our climate objectives in a credible way,” he said.
Jaspreet Duhra, managing director and global head of sustainability indices at S&P DJI, said Nordic countries had long been seen as leaders “in developing innovative tools and approaches to advance sustainability in all aspects of society including financial markets”.
The news of PenSam’s new index comes as the introduction of an ISS money market index aligned with the EU Paris-Aligned Benchmark standard was flagged in reports from the Platform on Sustainable Finance yesterday. The reports are about the market uptake of elements of the EU’s sustainable finance framework.
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