Scientific Beta

IPE: "Scientific Beta has launched what it considers to be the only pure climate index offering on the market, weighting stocks solely on their climate performance. According to the smart beta provider, the Climate Impact Consistent Indices (CICI) “make investment decisions and engagement practices consistent in order to maximise their impact”. There are two versions of the new indices. Scientific Beta refers to them as a standard version and one that complies with the minimum requirements of the EU Paris-Aligned Benchmark (PAB) regulation."

IPE 15/04/2021

"(...) Scientific Beta launches ‘pure climate’ index offering
Scientific Beta has launched what it considers to be the only pure climate index offering on the market, weighting stocks solely on their climate performance. According to the smart beta provider, the Climate Impact Consistent Indices (CICI) “make investment decisions and engagement practices consistent in order to maximise their impact”. There are two versions of the new indices. Scientific Beta refers to them as a standard version and one that complies with the minimum requirements of the EU Paris-Aligned Benchmark (PAB) regulation. It said it was offering a standard version because certain features of the PAB-compliant index “may be seen as excessive for some investors, or indeed counterproductive for fossil fuel sector engagement”. The PAB-compliant version differs from the standard version by involving a greater number of exclusions, leading to the elimination of nearly all stocks from the fossil fuel sector, and implementation of a carbon intensity reduction constraint of at least 50% compared with the cap-weighted reference from the start of the index. (...)"