Scientific Beta launches climate indices
Scientific Beta has announced the launch of a series of pure climate impact consistent indices (CICI) which will make stock weightings depend solely on their climate performance in order to help provide the CIC index with all of its consistency and avoid financial considerations contradicting climate considerations.
The firm said CICI was positioned implementing the recommendations of the net-zero investment coalitions at the portfolio-construction level. In particular, the Paris Aligned Investment Initiative (PAII) Framework.
Scientific Beta hoped that the CICI portfolio would bolster the power of an investor's engagement strategy by establishing its credibility thanks to the consistency between the actions that it undertook to engage companies on better climate alignment, and the investment decisions with respect to the same companies.
Commenting on the launch of the CICI offering, Dr Noël Amenc, chief executive of Scientific Beta, said, that the weighting approach at the heart of CICI would maximise the possible synergies between portfolio construction and engagement.
“By putting their money where their mouths are, investors bolster the potential for successful engagement. In this respect, Scientific Beta's Climate Impact Consistent Indices not only align with ESG impact considerations but also promote real-world impact through a unique approach to portfolio construction,” he added.
AUTHOR
Oksana Patron
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