FTSE EU Climate Benchmarks Index Series

Building decarbonization trajectories into the next generation of climate indexes

Climate transition benchmarks have become a focal point for investors looking to integrate climate risks and opportunities into their portfolios and align them with the climate goals of the Paris Agreement.

This has fueled an active interest among investor groups and regulators to identify criteria that can be used to define such benchmarks. Accordingly, EU Benchmark Regulation has introduced two sets of minimum benchmark requirements that attempt to address the risk of greenwashing, and create a definition for investment products that seek to demonstrate alignment with the Paris Agreement objectives.

The FTSE Paris-aligned Benchmark (PAB) Indexes and FTSE Climate Transition Benchmark (CTB) indexes, part of the FTSE EU Climate Benchmarks Index Series, combine FTSE Russell’s expertise in climate data, index design and tilting framework with the Transition Pathway Initiative’s analysis of how the world’s largest and most carbon intensive public companies are managing the climate transition.

The result is a broad global and domestic market equity index series that captures the risks and opportunities arising from the climate transition while also adjusting exposure to companies based on their TCFD-aligned climate governance and commitments to “2DC/Below 2DC pathways."

Key data inputs of the indexes

FTSE Paris-aligned Benchmark (PAB) Indexes graph

Learn more about Paris-aligned and Climate Transition Benchmarks

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