Speaker 1
Yoshiyuki Makino (Japan)
Senior Director and Head of S&P Indices Tokyo - S&P Indices
Title
S&P’s Sustainable Index Solutions for Environmentally Conscious Investors
Description
More and more investors demonstrate a preference for sustainability to factor carbon efficiency into their investment decisions. S&P Indices strives to provide sustainable indices to enable investors to reduce their carbon exposure without abandoning their investment strategy or experiencing below-market returns.
In the past, simplistic screening approaches eliminated whole sectors or industries - such as airlines, utilities or oil companies - which created skewed portfolios. S&P's approach maintains the balance between economic sectors and countries, while adjusting individual company weightings to reduce investor exposure to the carbon footprint. As a result, the Index meets the dual goals of reducing carbon exposure while keeping the performance differential between the carbon efficient index and its parent index, known as the 'tracking error,' at moderate levels.
In this session, S&P will introduce the S&P carbon efficient index series, its significance to the environment, corporations, and investors.