Scientific Beta adds low carbon option to its key indices
Smart beta index provider, Scientific Beta to offer a low carbon option for its flagship multi-smart-factor indices.
The Low Carbon option aimed to filter companies with high carbon intensity, which led to considerably reducing the indirect contribution to climate change of investment (the financed emissions) and which encouraged a transition to a low carbon economy.
It would also help exclude companies that fell short of standards of responsible business conduct and were involved in activities where there was a conflict with global environmental, social and governance (ESG) norms.
“The Low Carbon option is now a very important fiduciary choice for investors,” Scientific Beta's ESG director, Frederic Ducoulombier, said.
Scientific Beta's Low Carbon option was said to have financial risk/reward characteristics that were closely aligned with its standard smart factor indices, i.e. capable of delivering outperformance, through exposure to scientifically-validated risk premia and the reduction of specific, unrewarded risks.
It also the additional benefit of a 50% reduction in weighted average carbon intensity over the last ten years and tangible improvements in other measures of risks related to the transition towards a low carbon economy, the firm said.
Recommended for you
The Federal Court has issued its verdict in ASIC's first greenwashing case against Vanguard Investments Australia regarding the use of ESG exclusionary screens.
Investment managers who plan to implement artificial intelligence in the next five years expect to see increased productivity, but views are mixed on whether it will boost revenue and assets under management.
A former corporate adviser has been sentenced in the Supreme Court of Western Australia for insider trading to realise a profit of more than $57,000.
Private markets expertise is sought-after for investment operations hires as allocations to alternative assets rise, according to a recruitment firm, but there is a gap between demand and supply.