Scientific Beta

ETF Stream: " Smart beta index provider Scientific Beta has highlighted “significant flaws” in the European Union’s climate benchmarks. In a letter to the European Commission, the index provider, which was acquired by the Singapore Exchange in January, said there was a lack of “serious” study in the EU’s draft regulation which are designed to introduce new standards on climate change."

ETF Stream 05/05/2020

"(...) Smart beta index provider Scientific Beta has highlighted “significant flaws” in the European Union’s climate benchmarks. In a letter to the European Commission, the index provider, which was acquired by the Singapore Exchange in January, said there was a lack of “serious” study in the EU’s draft regulation which are designed to introduce new standards on climate change. (...) However, Scientific Beta has warned the “overly prescriptive” nature of the benchmark requirement and its move to broad-universe capitalisation weights reduces the flexibility to provide investors with climate benchmarks aligned with the diversity of their investment strategy. The firm stated in the letter: “We feel strongly that climate-conscious investors should not be corralled into one particular class of indices or excessively restricted by implicit methodological options. (...)"