PenSam Selects S&P Dow Jones Indices to Create a Climate-Focused Index

Rhea-AI Summary

S&P Dow Jones Indices has been selected by PenSam, one of Denmark's largest labor market pension providers, to develop a bespoke climate-focused index for its exclusive use. PenSam is utilizing the capabilities of S&P DJI's beS&P Index offering, which provides clients the ability to collaborate with S&P DJI to develop index-based solutions for their customer base. S&P DJI and PenSam are collaborating on a bespoke version of one of S&P DJI's carbon budget indices, which uses a defined level of carbon budget based on the findings of the United Nations' IPCC estimate of worldwide emissions to limit global temperature increases to 1.5ºC compared to pre-industrial levels.

Positive

• PenSam is utilizing the capabilities of S&P DJI's beS&P Index offering to develop a bespoke climate-focused index.
• S&P DJI and PenSam are collaborating on a bespoke version of one of S&P DJI's carbon budget indices, which is aligned with specific climate objectives and needs of PenSam.

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• None.

Insights

Market Research Analyst

The partnership between S&P Dow Jones Indices and PenSam marks a significant evolution in the field of sustainable investing. The creation of a bespoke climate-focused index caters to the growing demand for investment strategies that not only seek financial returns but also align with environmental values. This trend is particularly pronounced in regions like the Nordic countries, which have a robust reputation for prioritizing sustainability.

From a market perspective, the development of such indices can influence the flow of capital towards companies with lower carbon footprints, potentially affecting their market valuation and investor interest. As a result, companies may be incentivized to adopt more sustainable practices to be included in such indices, thereby driving broader changes in corporate behavior.

Financial Analyst

Investors are increasingly scrutinizing Environmental, Social and Governance (ESG) criteria, which has led to a surge in ESG-focused financial products. The collaboration between S&P DJI and PenSam underscores the financial industry's response to this demand. The creation of a custom index allows PenSam to tailor its investment strategy to its climate goals, potentially offering a competitive edge.

Furthermore, the integration of S&P Global Sustainable1's ESG data into the index's methodology may enhance the index's appeal to ESG-conscious investors. This could lead to a diversification of PenSam's portfolio, potentially reducing risk and improving returns over the long term.

Sustainability Consultant

The creation of a bespoke climate-focused index by S&P DJI for PenSam is a notable example of how sustainability considerations are being integrated into the core strategy of financial institutions. Such indices use a carbon budget aligned with the IPCC's recommendations, which serves as a quantifiable and science-based benchmark for investors.

This approach provides a transparent framework for investors to assess how their investments contribute to global climate objectives. Moreover, it encourages companies to measure and disclose their carbon emissions rigorously, fostering greater accountability and progress towards sustainability goals.

LONDON, Jan. 30, 2024 /PRNewswire/ -- S&P Dow Jones Indices ("S&P DJI"), the world's leading index provider, announced today that it has been selected by PenSam, one of Denmark's largest labor market pension providers, to develop a bespoke climate-focused index for its exclusive use.

PenSam is utilizing the capabilities of S&P DJI's newly launched beS&P Index offering, which provides clients the ability to collaborate with S&P DJI to develop index-based solutions for their customer base.

Through the beS&P offering, S&P DJI clients such as PenSam can access S&P DJI's deep experience and knowledge in designing and constructing indices and developing index methodologies, while incorporating a client-focused approach to specific proprietary exclusions and more targeted exposures on a given index that are aligned with clients' specific objectives and needs.

S&P DJI and PenSam are collaborating on a bespoke version of one of S&P DJI's carbon budget indices, an index family launched in 2022, which uses a defined level of carbon budget based on the findings of the United Nations' Intergovernmental Panel on Climate Change (IPCC) estimate of worldwide emissions to limit global temperature increases to 1.5ºC compared to pre-industrial levels.

"S&P DJI has a strong Environmental, Social and Governance product offering especially with climate indices. S&P DJI has been able to accommodate all our specific needs and a high degree of customization. The carbon budget indices, along with customization, allow PenSam to achieve our climate objectives in a credible way. S&P DJI's indexing capabilities, with its ESG data through S&P Global Sustainable1, has been an excellent platform to develop an equity strategy with both a focus on performance and climate objectives," said Claus Jørgensen, Chief Investment Officer at PenSam.

"Nordic countries such as Denmark have long been viewed as leaders in developing innovative tools and approaches to advance sustainability in all aspects of society including financial markets. S&P Dow Jones Indices is proud to offer its bespoke indexing capabilities in the Danish market through its collaboration with PenSam," said Jaspreet Duhra, Managing Director and Global Head of Sustainability Indices at S&P DJI.

For more information about S&P Dow Jones Indices, please visit https://www.spglobal.com/spdji/en/.

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/.

FOR MORE INFORMATION:

S&P DOW JONES INDICES
spdji.comms@spglobal.com

April Kabahar
Global Head of Communications
(+1) 917 796 3121
april.kabahar@spglobal.com 

Asti Michou
EMEA Communications
+44 (0) 20 7176 0311
asti.michou@spglobal.com 

View original content:https://www.prnewswire.com/news-releases/pensam-selects-sp-dow-jones-indices-to-create-a-climate-focused-index-302047319.html

SOURCE S&P Dow Jones Indices

FAQ

What is the collaboration between S&P DJI and PenSam about?

S&P DJI has been selected by PenSam to develop a bespoke climate-focused index for its exclusive use, utilizing the beS&P Index offering.

What are the specific objectives of the collaboration?

The collaboration aims to develop a bespoke version of one of S&P DJI's carbon budget indices, aligned with PenSam's specific climate objectives and needs.

What are the capabilities of S&P DJI's beS&P Index offering?

The beS&P Index offering provides clients the ability to collaborate with S&P DJI to develop index-based solutions for their customer base.

How is the carbon budget index developed by S&P DJI aligned with climate objectives?

The carbon budget index uses a defined level of carbon budget based on the findings of the United Nations' IPCC estimate of worldwide emissions to limit global temperature increases to 1.5ºC compared to pre-industrial levels.