Index provider S&P Dow Jones Indices has been selected by Denmark’s labour market pension provider PenSam to develop a bespoke climate-focused index for its exclusive use.
PenSam is utilising the capabilities of S&P DJI’s newly launched beS&P Index offering, which provides clients with the ability to collaborate with S&P DJI to develop index-based solutions for their customer base.
Through the offering, S&P DJI clients such as PenSam can access S&P DJI’s expertise 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’ 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 using 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’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,” added Jaspreet Duhra, managing director and global head of sustainability indices at S&P DJI.
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