FTSE TPI Climate Transition Index Series

The FTSE TPI Climate Transition Index Series is designed to reflect the performance of global and diversified indices, where constituent weights vary to account for risks and opportunities associated with the transition to a low carbon economy. Constituent weights are based on five key climate considerations: company exposure to green revenues, fossil fuel reserves and operational carbon emissions, as well as companies' climate governance activities (aligned with the Taskforce on Climate-related Financial Disclosures’ recommendations) and forward-looking commitments to carbon emission pathways (aligned to the Paris Agreement and 1.5°C/below 2°C warming scenarios). The indices combine data and analysis from FTSE Russell and the Transition Pathway Initiative (TPI).

In addition, the FTSE Global Core Infrastructure TPI Climate Transition Index measures the performance of a basket of investable securities in FTSE-defined infrastructure sub-sectors and alternative electricity sectors, where constituent weights vary to account for risks and opportunities associated with the transition to a low carbon economy.

The index series design incorporates five key climate data inputs from the TPI core assessments and FTSE Russell's climate framework:

• Fossil fuel reserves: Underweight companies with fossil fuel reserves

• Carbon emissions (Scopes 1 & 2): Over/underweight companies according to their greenhouse gas emissions while applying sector neutrality

• Green revenues: Overweight companies generating revenues from the global green economy

• Management quality: Over/underweight companies based on the extent to which they are managing the risks and opportunities related to the low-carbon transition and how they are addressing key aspects of the Taskforce on Climate-related Financial Disclosures (TCFD)

• Carbon performance: Over/underweight companies according to the extent to which they are committed to carbon emissions pathways that are aligned with 1.5°C/below 2°C warming scenarios

The Transition Pathway Initiative (TPI) is a global initiative led by asset owners and supported by asset managers, aimed at investors to help assess companies’ preparedness for the transition to a low-carbon economy, supporting efforts to address climate change. FTSE Russell has been the data provider for the TPI since 2017.

The index series comprises of:

• FTSE All-World TPI Transition ex Fossil Fuel ex Tobacco ex Controversies Index
• FTSE All-World ex Japan TPI Climate Transition Index
• FTSE Developed TPI Climate Transition ex Coal ex Controversies ex Nuclear ex Tobacco Index
• FTSE Developed ex Korea TPI Climate Transition Index
• FTSE Developed ex Australia TPI Climate Transition Index
• FTSE Emerging TPI Climate Transition Index
• Russell 1000 TPI Climate Transition Index
• FTSE Japan TPI Climate Transition Index
• FTSE Australia 100 TPI Climate Transition Index
• FTSE Australia 200 TPI Climate Transition Index
• FTSE Australia 300 TPI Climate Transition Index
• FTSE New Zealand TPI Climate Transition Index
• FTSE Global Core Infrastructure TPI Climate Transition Index