Scientific Beta

Frédéric Ducoulombier, ESG Director at Scientific Beta, was invited to participate in a roundtable organised by Option Finance in June 2022 on the theme "The climate issue goes beyond new indices", in which the participants in this major low-carbon debate discussed at length the contribution of the new PAB and CTB indices and their limitations.

Frédéric Ducoulombier, ESG Director at Scientific Beta, was invited to participate in a roundtable organised by Option Finance in June 2022 to discuss whether the climate issue goes beyond new indices.

The stock market outperformance of fossil fuels has not prevented portfolios from taking into account the fight against global warming. Long-term managers and investors are maintaining their commitment to limiting the carbon emissions generated by their financing. Among the tools that appear to be essential in this fight are the new indices, PAB and CTB, defined by European regulation.

The participants in Option Finance magazine's major low-carbon debate discussed at length the contribution of these new indices and their limitations. While these indices predict a reduction in greenhouse gas emissions at a rate consistent with a global increase of 1.5 degrees, they are not suitable for sector or niche funds. Moreover, given the importance of the climate issue, it cannot be limited to the use of dedicated funds and/or indices, but must permeate all types of management.