Morningstar launches EU Climate Indexes

Allows investors to target companies on track for decarbonisation

Morningstar has rolled out a new climate index series designed to help investors progress toward meeting EU Climate Transition Benchmarks (CTB) and Paris-Aligned Benchmarks (PAB) requirements.

The Morningstar EU Climate indexes allows investors to target companies within a broad market index that are on track for decarbonisation in line with Paris accord targets, while minimizing tracking error against the parent index. The series combines Morningstar core benchmarks with carbon emissions data and carbon risk ratings from Sustainalytics, a Morningstar company and global provider of ESG research, ratings and data. Tobias Sproehnle, head of Morningstar Indexes in Europe, said: "As we approach the start of COP26, global investors are more focused than ever on climate change an...