The S&P Climate Transition Index Series and S&P Paris-Aligned Climate Index Series measure the performance of eligible equity securities from an underlying parent index selected and weighted to be collectively compatible with a 1.5ºC global warming climate scenario at the index level. The S&P Paris-Aligned Climate Index Series encompasses all the elements of the S&P Climate Transition Index Series, but are differentiated by their additional restrictiveness and ambition, seen through their additional constraints and eligibility requirements. The indices apply exclusions based on companies’ involvement in specific business activities, performance against the principles of the United Nations’ Global Compact (UNGC), and involvement in relevant ESG controversies.

The indices aim to meet the minimum standards for EU Climate Transition Benchmarks (EU CTBs) and EU Paris-aligned Benchmarks (EU PABs) under Regulation (EU) 2019/2089 amending Regulation (EU) 2016/10112. The law proposes the definitions of minimum standards for the methodology of any ‘EU Climate Transition’ and ‘EU Paris-Aligned’ benchmark indices that would be aligned with the objectives of the Paris Agreement, and addresses the risk of greenwashing.