Published on November 15, 2024
We are pleased to announce the launch of our new Climate Family, composed of Climate Transition Benchmarks (CTBs) and Paris Aligned Benchmarks (PABs). This initiative represents a significant step forward in our ability to offer benchmarks aligned with the objectives of the Paris Agreement, and to contribute to the global effort to combat climate change.
Decarbonization Targets: PABs have more stringent decarbonization targets compared to CTBs, requiring a 50% initial reduction in GHG emissions versus 30% for CTBs.
Sector Exclusions: PABs largely exclude high-emitting sectors like energy, making them suitable for investors with strong divestment preferences. CTBs, on the other hand, hold energy companies but heavily reweight them towards best-in-class performers.
Focus: PABs focus on aligning with the 1.5°C temperature rise scenario of the Paris Agreement, while CTBs aim to transition to a low-carbon economy in line with the EU’s Climate Law.
