Foxberry implements Paris Alignment of the Sustainability Consensus index family
Foxberry, the provider of financial indices and front-oﬀice technology for the financial sector, has announced that the Paris Alignment of its Foxberry Sustainability Consensus index family previously publicised has now been implemented.
The Sustainability Consensus family of indices are based on exclusion guidelines determined by Foxberry’s Sustainability Committee. The Sustainability Committee aims to unlock the sustainability expertise among the asset owner community in order to be able to act on new insights in sustainability investing.
The Paris Agreement aims to keep global temperature rise to well below 2°C, preferably to 1.5°C above preindustrial levels. To achieve this goal, global greenhouse gas emissions need to fall to by nearly half by 2030, and to net-zero no later than 2050, according to the Intergovernmental Panel on Climate Change (IPCC), and a corresponding minimum set of criteria for Paris Aligned benchmarks have been published by the EU.
The intention to implement Paris Alignment was announced following a period of consultations by Foxberry and its Sustainability Committee.
The primary data source used by the Sustainability Committee for the implementation of exclusions, green commitments and Paris Alignment is MSCI.
The Sustainability Consensus family currently consists of regional indices for the US and European equity markets. These indices are tracked by Exchange Traded Funds managed by Legal & General Investment Management.
With Foxberry’s foxf9 platform, full transparency is achieved in understanding the impact of exclusion guidelines, green commitments and Paris Alignment optimisation.
David Sahlin, Chairman of the Sustainability Committee, said, “The Sustainability Committee has always been about offering a responsible and dynamic approach to sustainable investing. I am pleased to see the investment criteria getting stricter as we move towards net-zero.”