PenSam Partners with S&P Dow Jones Indices to Launch Custom Climate-Focused Index
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S&P Dow Jones Indices, the world’s leading index provider, announced that it has been selected by PenSam, one of Denmark’s largest labor market pension providers, to develop a bespoke climate-focused index for its exclusive use.
PenSam is utilizing the capabilities of S&P DJI’s newly launched beS&P Index offering, which provides clients the ability to collaborate with S&P DJI to develop index-based solutions for their customer base.
Through the beS&P offering, S&P DJI clients such as PenSam can access S&P DJI’s deep experience and knowledge in designing and constructing indices and developing index methodologies, while incorporating a client-focused approach to specific proprietary exclusions and more targeted exposures on a given index that are aligned with clients’ specific objectives and needs.
S&P DJI and PenSam are collaborating on a bespoke version of one of S&P DJI’s carbon budget indices, an index family launched in 2022, which uses a defined level of carbon budget based on the findings of the United Nations’ Intergovernmental Panel on Climate Change (IPCC) estimate of worldwide emissions to limit global temperature increases to 1.5ºC compared to pre-industrial levels.
“S&P DJI has a strong Environmental, Social and Governance product offering especially with climate indices. S&P DJI has been able to accommodate all our specific needs and a high degree of customization. The carbon budget indices, along with customization, allow PenSam to achieve our climate objectives in a credible way. S&P DJI’s indexing capabilities, with its ESG data through S&P Global Sustainable1, has been an excellent platform to develop an equity strategy with both a focus on performance and climate objectives,” said Claus Jørgensen, Chief Investment Officer at PenSam.
“Nordic countries such as Denmark have long been viewed as leaders in developing innovative tools and approaches to advance sustainability in all aspects of society including financial markets. S&P Dow Jones Indices is proud to offer its bespoke indexing capabilities in the Danish market through its collaboration with PenSam,” said Jaspreet Duhra, Managing Director and Global Head of Sustainability Indices at S&P DJI.