Index provider S&P Dow Jones Indices (S&P DJI) today announced the launch of biodiversity-focused versions of its flagship S&P 500 and Global LargeMidCap indices, with the aim of offering investors a benchmarking solution that integrates sustainability factors, including biodiversity, the UN SDGs and climate change. .
The new indices mark an expansion of the sustainability-focused benchmarks offered by S&P and follow the recent launch of SDG-focused versions of the S&P 500 and Global LargeMIdCap indices, providing exposure to companies more aligned with the UN Sustainable Development Goals (SDGs). .
Jas Duhra, Global Head of Sustainability Indices at S&P DJI, said:
“S&P Dow Jones Indices’ approach to index design reflects a holistic view of the vast sustainability ecosystem, and biodiversity is an important part of this equation. S&P Biodiversity Indices are designed to help provide additional insights to our clients and market participants looking to measure, analyze and better understand the impact of their investments on the natural world and support their goals of creating a more resilient and sustainable investment landscape. ecologically conscious. .”
According to S&P DJI, constituents of the new S&P 500 Biodiversity Index and the S&P Global LargeMidCap Biodiversity Index are selected and weighted to reflect their alignment with certain environmental and biodiversity objectives, with screening and selection using the Nature & Biodiversity dataset Risk from S&P Global Sustainable1, which assesses impacts and dependencies related to nature in a company's direct operations. The selection and weighting of indices reflects a collective reduction in the intensity of ecosystem impact, limits the proportion of ecosystem impact to significant lands, and also considers alignment with specific SDGs as well as a reduction in carbon footprint relative to key indices .
Steven Bullock, Global Head of Research and Methodology at S&P Global Sustainable1, said:
“S&P Global Sustainable1 research shows that 85% of the world's largest companies depend significantly on nature and biodiversity. This makes access to nature- and biodiversity-focused data, insights and analytics essential to support market participants in understanding, managing and mitigating exposure to nature-related risks and impacts.”
