LSEG has contributed to a new Glasgow Financial Alliance for Net Zero (GFANZ) publication, ‘Case Studies on Transition Finance and Decarbonization Contribution Methodologies'. Our case study uses the FTSE TPI Climate Transition Index Series to demonstrate the different climate metrics that investors can use to build climate transition investment strategies. It also shows how these metrics fall into the four GFANZ categories of climate finance:
- Climate Solutions: Entities and activities that develop and scale climate solutions
- Aligned: Entities that are already aligned to a 1.5 degrees C pathway
- Aligning: Entities committed to transitioning in line with 1.5 degrees C-aligned pathway
- Managed Phaseout: The accelerated managed phaseout of high-emitting physical assets
Launched in 2021, GFANZ is a global coalition of leading financial institutions committed to accelerating the decarbonisation of the economy. LSEG is a founding member of GFANZ and its sector-specific Net Zero Financial Service Providers Alliance (NZFSPA), which is a global group of financial service providers supporting the goal of net zero in line with the ambition to limit global temperature increase to 1.5°C from pre-industrial levels. As a leading global financial markets infrastructure and data provider, LSEG’s engagement in the NZFSPA is coordinated across several Alliance workstreams: Research and data; indices and benchmarks; and stock exchanges. We have set goals across each of these workstreams relating to the relevant products and services we provide across our businesses to meet our customers’ needs.
In relation to this publication, it is worth noting that LSEG, through FTSE Russell, has set targets to grow the range of climate transition indices it provides to the market including the FTSE TPI Climate Transition Index Series. LSEG is also an active member within the GFANZ Index Investing workstream which helps to identify opportunities and hurdles associated with the construction and maintenance of Net Zero indices.
LSEG plays an active role in GFANZ workstreams and LSEG's CEO, David Schwimmer, is a member of the GFANZ Principals Group, which sets the strategic direction and priorities and monitors progress.
Read the full paper: Case-Studies-on-Transition-Finance-and-Decarbonization-Contribution-Methodologies-Sep-2024.pdf (bbhub.io)
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