Phoenix Group launches bespoke 'Climate Aware' index series

Written by Adam Cadle

05/06/2024

Phoenix Group has launched a bespoke ‘Climate Aware’ index series in collaboration with FTSE Russell.

This launch forms part of Phoenix Group’s decarbonisation strategy for equity investments, in line with its Net-Zero Transition Plan published last year. The index series will enable Phoenix to introduce benchmarks that aim to increase the resilience of customers’ portfolios to climate change related transition risks.

Furthermore, the construction follows core principles set by Phoenix which includes the pace of the decarbonisation trajectory and the inclusion of forward-looking data, ensuring that climate risk management and that engaging for change are at its core. Phoenix’s exclusion policy is embedded within the design removing companies engaged in products and business practices that are not aligned to Phoenix’s principles.

In line with its Net-Zero Transition Plan, Phoenix will be undertaking a phased introduction of these benchmarks across multiple regions for customer portfolios, starting with US equities.

Sindhu Krishna, head of sustainable investment at Phoenix Group, said: "At Phoenix, we believe that transition risk will be a key climate risk factor over the coming decades as governments, corporate and customers respond to the climate emergency. Without management of those risks, our policyholders are likely to be exposed to a higher probability of sub-optimal investment performance.

"Creating these new benchmarks will also allow us to ensure that our asset management partners follow a consistent approach to implementing our climate risk management strategy across the assets they manage on our behalf.

"We are delighted to have worked with FTSE Russell to create the new FTSE Phoenix Climate Aware Index Series to create benchmarks which aim to manage and mitigate risk as we continue to seek optimal outcomes for our customers."

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