Robeco introduces low carbon indices

Robeco has launched a range of sustainable indices, the Robeco SDG Low Carbon Indices. The indices are available for seven regions: global AC, global DM, emerging markets, US, Europe, Asia Pacific and Japan.

The index uses Robeco’s proprietary SDG framework and aims to make a positive contribution to the UN Sustainable Development Goals. Stocks that receive negative scores based on the SDG framework are excluded from the universe.

The index also aims at making a positive contribution to a low carbon economy, and has a significant carbon footprint reduction compared with market cap indices.

“We’re very excited to have launched the new set of indices for our clients,” said Joop Huij, head of sustainable index solutions. “In addition to private transparency for our clients, the SDG Low Carbon Indices have low turnover, liquidity and transaction costs taken into account in the index construction, and the high capacity is monitored and managed. This all allows for efficient implementation for our clients.”

Lucian Peppelenbos, climate strategist, added: ”The indices go beyond traditional carbon data sources. By using input from my team and the SDG framework, the indices differentiate between climate laggards and climate leaders. Climate leaders are companies that might have a relatively high carbon footprint based on their current and past emissions, but are driving green innovations and are therefore essential in the transition to a low-carbon economy.”