S&P Dow Jones Indices is committed to providing transparency to markets and publishing relevant environmental metrics on indices. A range of metrics reveals the carbon footprint of each index, alongside exposure to fossil fuels, stranded assets, and renewable energy. A new metric has been added this year: carbon price risk exposure. This metric, developed by Trucost, helps investors understand how companies, and ultimately portfolios and indices, are exposed to the risk of governments imposing a price on carbon emissions.
•Absolute emissions decreased for the S&P Asia 50, S&P Europe 350, S&P Global 1200, S&P Latin America 40, S&P/ASX All Australian 50, and S&P TOPIX 150.
•In 2017, all indices increased their share of renewable power generation and decreased their share of fossil fuel power generation, with the exceptions of the S&P/ASX All Australian 50 and S&P Asia 50.
•The S&P/TOPIX 150 had the smallest coal exposure score and is well positioned in the face of punitive climate legislation.
•The carbon intensity of every index assessed increased in 2017, except for the S&P Asia 50, which decreased its carbon intensity by 26%.