London Stock Exchange Group welcomes The Church of England Pensions Board Celebrating the launch of the FTSE TPI Climate Transition Index

London Stock Exchange Group welcomed the Church of England Pensions Board on Thursday 30 January 2020 to launch the ‘FTSE-TPI Climate Transition Index’ and open the market. The Church of England Pensions Board also announced a £600 million allocation to the just- launched Index.

The FTSE-TPI Climate Transition Index is the first global index that enables passive funds to capture company alignment to the Paris Climate Agreement. This new generation of Index has been developed by the Church of England Pensions Board, in collaboration with FTSE Russell and the Transition Pathway Initiative (TPI).

The Transition Pathway Initiative (TPI) is a global initiative that assess how individual companies are positioning themselves for the transition to a low-carbon economy. The TPI is backed by 62 funds with over US $18 trillion of combined assets under management or assets under advice. TPI is co-chaired by the Church of England Pensions Board and the Environment Agency Pension Fund in partnership with the Grantham Research Institute at the London School of Economics. Data is provided by FTSE Russell.

The development of the Index has been an important project of the Church of England Pensions Board over the past 18 months seeking to integrate the insights of the Transition Pathway Initiative (TPI) into its passive investments.

The Index will reward those companies with public targets aligned to the Paris Agreement whilst significantly underweighting or excluding those that do not. This index is the first to embed forward looking data from the London School of Economics hosted Transition Pathway Initiative (TPI), tracking whether companies align to 2DC or below 2DC/Net Zero.

At the launch, the Church of England Pensions Board and FTSE Russell issued an open invitation to other pension funds to consider this approach for their passive investments and in managing their climate transition risk.