• GFANZ Case Study Contribution: LSEG’s FTSE TPI Climate Transition Index Series helps investors build climate strategies and aligns with GFANZ’s four climate finance categories.
• Active Participation: As a founding GFANZ member, LSEG plays a key role in multiple workstreams to advance transition finance.
• Commitment to Climate Solutions: LSEG is expanding its climate transition indices, targeting innovation in sustainable finance.

LSEG’s Commitment to Transition Finance

The London Stock Exchange Group (LSEG) has contributed to the latest Glasgow Financial Alliance for Net Zero (GFANZ) publication, titled “Case Studies on Transition Finance and Decarbonization Contribution Methodologies.” The case study uses the FTSE TPI Climate Transition Index Series to showcase diverse climate metrics that investors can leverage to develop climate transition investment strategies.

LSEG’s metrics align with GFANZ’s four categories of climate finance:

• Climate Solutions: Entities and activities that innovate and scale climate solutions.
• Aligned: Entities that are already aligned with a 1.5°C pathway.
• Aligning: Entities committed to transitioning in line with a 1.5°C-aligned pathway.
• Managed Phaseout: The systematic phaseout of high-emitting physical assets.

A Founding Member Driving Change

Launched in 2021, GFANZ is a global coalition of leading financial institutions committed to accelerating the decarbonization of the economy. LSEG, as a founding member of GFANZ and its sector-specific Net Zero Financial Service Providers Alliance (NZFSPA), plays a crucial role in supporting the goal of net zero.

“As a leading global financial markets infrastructure and data provider, LSEG’s engagement in NZFSPA spans research and data, indices and benchmarks, and stock exchanges,” LSEG stated in the case study.

The group has established targets across various Alliance workstreams to meet the needs of its customers, ensuring a comprehensive approach to sustainable finance.

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Expanding Climate Transition Indices

Through FTSE Russell, LSEG has set ambitious targets to grow its range of climate transition indices, such as the FTSE TPI Climate Transition Index Series. The initiative underscores LSEG’s leadership in the GFANZ Index Investing workstream, which aims to identify opportunities and address challenges in constructing and maintaining Net Zero indices.

LSEG’s CEO, David Schwimmer, is a member of the GFANZ Principals Group, which “sets the strategic direction and priorities and monitors progress,” reinforcing LSEG’s commitment to global sustainable finance.

For more details, access the full publication.