FTSE EU Climate Benchmarks Index Series

The FTSE EU Climate Benchmarks Index Series is designed to reflect the performance of global, regional and domestic equity market indexes, where the weights of index constituents vary to account for risks and opportunities associated with the transition to a low carbon economy. The methodology aligns to the minimum standards for EU Low Carbon Benchmark Requirements* and support investors’ decarbonization or net zero strategies. The FTSE Paris-aligned Benchmark (PAB) Indexes target a minimum 50% reduction whilst the FTSE Climate Transition Benchmark (CTB) Indexes target a minimum 30% reduction in carbon emissions relative to the reference benchmark. The indexes combine data and analysis from FTSE Russell and the Transition Pathway Initiative (TPI).

The indexes exceed the minimum requirements of the EU Climate Benchmarks Regulation via:

  • • Targets on increased exposure to companies with Green Revenues, high climate governance, and emission reductions that are in line with the goals of the Paris Agreement
  • • Exclusions applied to ‘pure play’ (>50% revenues) oil sands, thermal coal extraction and thermal coal power generation companies in both index sub-families
  • • Limits on weights of companies within the Banking sector

The indexes are constructed with the FTSE Target Exposure Framework, which allows a transparent tilt exposure towards and away from index constituents according to a number of exposure objectives.

A broad offering of global and domestic equity markets—including the well-known FTSE Global Equity Index Series (FTSE GEIS), FTSE UK Index Series, and the Russell US Indexes—provide clients with a comprehensive foundation for both their global and local market investing needs.

*Commission Delegated Regulation 2020/1818 of 17 July, 2020, European Commission, 17 July 2020

Index rules should be read in conjunction with supportingFTSE Russell noticesThese notices advise of advance changes in index methodology, which may not be reflected in index rules until the change effective date. The notices may also communicate revisions in index treatment in the period up to a rule change.