Corporate Knights Capital has partnered with Solactive to launch a family of low carbon indices providing exposure to companies in carbon intensive sectors, while maintaining exposure for companies in other sectors.
The new indices available include: Solactive CK Low Carbon US Index, Solactive CK Low Carbon Europe Index, and Solactive CK Low Carbon Canada Index.
The new index family has been designed to serve as benchmark or underlying for low carbon investment strategies.
The Solactive CK Low Carbon Index family is the first in the industry to use the Sustainable Industry Classification System (SICS), established by the Sustainability Accounting Standards Board (SASB) to categorize industries based on resource intensity, sustainability impact, and sustainability innovation potential.
A defining feature of the indices is that they ensure a minimum 50 per cent reduction in carbon intensity against the market benchmarks, as verified by South Pole Carbon.
Toby Heaps, CEO of Corporate Knights Capital, says: “Our best-of-sector approach cuts carbon in half, while offering an efficiency upside in the sectors where it matters most.”
Steffen Scheuble, CEO of Solactive, adds: “We are pleased to launch this innovative family of indices with Corporate Knights as demand from the market for sustainable investment solutions keeps increasing, while investors’ awareness and interest for that theme have considerably improved over the past few years.”
Maximilian Horster, partner in the South Pole Group, says: “With our world-leading expertise on investment climate impact, we are proud to certify that investing into these low-carbon indices does indeed cut an investors direct investment carbon footprint by half.”