S&P Dow Jones launches biodiversity focused benchmarks

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The index provider, S&P Dow Jones Indices, has launched the S&P Biodiversity Indices, adding to the range of sustainability performance benchmarking tools it offers to asset managers.

The two indices, the S&P 500 Biodiversity Index and S&P Global LargeMidCap Biodiversity Index, measure the performance of a subset of equity securities from the S&P 500 and S&P Global LargeMidCap indices.

To develop the biodiversity-focused versions of these equity market benchmarks, both indexes are selected and weighted to reflect their alignment with environmental and biodiversity objectives.

The indices offer businesses performance benchmarking solutions that integrates biodiversity, the United Nations (UN) Sustainable Development Goals (SDGs) and carbon datasets which align with the targets set out by the UN’s Biodiversity Conference (COP15).

The components in the index are selected and weighted to limit ecosystem impact intensity, align with specific UN SDGs, and reduce its carbon footprint.

Global head of sustainability at S&P Dow Jones, Jas Duhra, said: “S&P Dow Jones Indices’ approach to index design reflects a holistic view of the vast sustainability ecosystem and biodiversity is an important part of this equation.

“The S&P Biodiversity Indices are designed to help offer additional insights for our clients who are seeking to measure, analyse and better understand their investments’ impact on the natural world, and support their goals to create a more resilient and ecologically conscious investment landscape.”

This story first appeared in our sister publication, PA future.