STOXX Climate Transition Benchmark (CTB) and STOXX Paris-Aligned Benchmark (PAB) Indices 

Creating Intelligent Climate Investment Solutions


STOXX Climate Indices are designed to facilitate the shift in investments towards a low-carbon economy and to align investments to the Paris Climate Agreement.

The STOXX Climate Transition Benchmark Indices and STOXX Paris-Aligned Benchmark Indices are constructed to follow the EU Climate Benchmark1 (EU CTB and EU PAB) requirements. The indices encourage climate stewardship and corporate engagement in addition to meeting the regulatory requirements.


  • STOXX Paris-Aligned Benchmark Indices (PAB) – These indices incorporate stringent carbon limitations in line with the overall long-term global warming target of the Paris Agreement2 and aim for 60% greenhouse gas (GHG) intensity reduction.
  • STOXX Climate Transition Benchmark Indices (CTB) – These benchmarks allow more diversification and are designed to assist investors in the transition to a low-carbon economy by adopting a decarbonization trajectory. They aim for 40% greenhouse gas (GHG) intensity reduction.

STOXX’s CTB and PAB Indices and Underlying Benchmark Indices

EU Climate Benchmarks Objectives

 Disincentive Greenwashing

Seek to address the risk of greenwashing

 Comparability

Allow comparability between climate benchmarks while leaving benchmark administrators with flexibility in their methodologies

 Investment Strategy

Provide investors with an appropriate tool that is aligned with their investment strategy

Transparency

Increase transparency on investors’ impact on climate change and energy transition

Superior Design Criteria Sets STOXX Indices Apart

The construction of STOXX indices adds vital steps that emphasize the climate objectives

Scope 3 Inclusion3

 

Scope 3 data is used from inception to account for companies' direct and indirect emissions

Sustainable Development Goals 13, Climate Action4

 

Securities that have significant obstruction to SDG 13 Climate Action are not eligible

Science-Based Targets

 

Qontigo aspires to influence companies to set and have approved science-based targets and therefore only includes companies that will fulfill the Science-Based Targets initiative (SBTi) by March 2030 in the indices

Climate Leaders

 

Indices will reward energy-efficient companies that are ready to seize opportunities arising from the transition to a low-carbon economy, and those that are well-positioned to meet their carbon budget targets

Our open architecture allows us to integrate the world’s leading climate data from our data partner ISS ESG. This includes the most complete set of carbon data, science-based targets and emission scenarios, which are used to overweight climate leaders and underweight the laggards. In addition, the indices are screened for controversial activities involvement.

Research Paper:

An Introduction to the STOXX Paris-Aligned Benchmark Indices

This paper illustrates the processes that Qontigo followed in constructing the STOXX Paris-Aligned Benchmark Indices, with specific focus on the STOXX® Europe 600 Paris-Aligned Benchmark Index, and the additional steps taken to reinforce the objectives of the EU PABs. 

 

Read more >

Additional Resources

Learn more about STOXX Climate Transition Benchmark (CTB) and STOXX Paris-Aligned Benchmark (PAB) Indices or schedule a conversation about how these solutions can help your investment strategy.