Australian Climate Transition Index
Equity-linked green bonds deliver a unique future-facing equities index
The ACT Index responds to investor demand for innovative investment products which have a sustainability focus and clear alignment with key risk and return requirements. It will also support greater engagement between investors and companies around emissions reduction.
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Australian Climate Transition Index
June 2022
The Australian Climate Transition Index is the first Australian equities index with a specific focus on climate transition and decarbonisation. It brings together the increasing scale of impact investors with Australian companies who are leading the emissions transition.
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The Australian Climate Transition Index seeks to identify up to 100 Australian companies from within the ASX 300 which are likely to perform well in a world undergoing a 2°C transition. CEFC analysis suggests the ASX 300 companies are responsible for 40 per cent of national emissions, pointing to their potential to make a substantial contribution to Australia’s emissions.
The ACT Index was developed through a two-year collaboration between BNP Paribas, Climateworks Centre, sustainability analysts, ISS ESG, and the Monash University Centre for Quantitative Finance and Investment Strategies.
As the first forward-looking index in the Australian market, the ACT Index gives investors the capacity to analyse the climate risk profile of their ASX portfolios. At the same time, it gives emissions-focused companies a powerful incentive to accelerate their decarbonisation efforts.
