This year, STOXX introduced the ISS STOXX Net Zero Transition indices. The next-generation, optimized suite is aligned with net-zero targets, focused on real-world, transition-aligned metrics and are encompassing of all industries included in the parent universe.
The indices are versions of established benchmarks such as the STOXX® World AC and STOXX® Europe 600 and follow the International Energy Agency’s Net-Zero Pathway, seeking alignment with the 2050 carbon budget by 2040. They incorporate sector-specific performance indicators, and include systematically important companies from high-emitting sectors.
Antonio Celeste, Head of Sustainability, Index Product Management at STOXX, explains in an interview with Asset TV how the indices hand investors the tools and advanced data to build portfolios. Antonio discusses how the indices differ from existing low carbon solutions, their use of ISS ESG data and transition scenarios, and the integration of advanced metrics and constraints to achieve the various subjective while keeping tracking error in check.
Watch the interview below. For more on the ISS STOXX Net Zero Transition indices, visit our blog article from January.