Scientific Beta

ESG Investor: "With its Climate Impact Consistent Indices, Scientific Beta has constructed indices where capital allocation decisions are entirely based on how well companies are doing in terms of climate change mitigation compared to their peers, ie leaders are consistently rewarded over time and laggards consistently penalised."

ESG Investor 15/03/2023

"(...) Singapore-based Scientific Beta is amongst the smaller ‘other’ providers that dominate market share of ESG indices, alongside players such as Japan Exchange Group and US-based Cboe Global Markets. (...) Erik Christiansen, ESG and Climate Investment Specialist at Scientific Beta, says the main trend it is seeing from clients is a move from low-carbon strategies towards transition or alignment strategies. “There is less focus on simply reducing a portfolio’s carbon footprint or climate risk exposure, and more focus on how investors can push companies to adopt pathways towards net zero emissions,” says Christiansen. But Christiansen says many products using such terms – including some carrying the EU-regulated Paris Aligned Benchmark label – are extremely tightly anchored to plain vanilla cap-weighted market indices. “It is unlikely that you can radically change the economy if you invest in the economy as it is today,” he notes. With its Climate Impact Consistent Indices, Scientific Beta has constructed indices where capital allocation decisions are entirely based on how well companies are doing in terms of climate change mitigation compared to their peers, ie leaders are consistently rewarded over time and laggards consistently penalised. (...)"