Why ESG data is key to reducing exposure to climate change

With a suite of more than 150 headline ESG benchmarks and two decades of experience in this universe, S&P Dow Jones Indices is a leader in sustainable indexing solutions. Priscilla Luk, managing director and head of Asia Pacific global research and design, outlined how climate change data is fuelling investors’ decision-making process.

Q. WHY ARE INVESTORS, SUCH AS JAPAN'S GPIF, INTERESTED IN ESG?

ESG issues can affect the performance of investment portfolios across the board. How those ESG principles are incorporated is gaining significant importance for investors, owners and creditors, as reflected by the number of signatories to the United Nations Principle of Responsible Investment, the global standard for responsible investment – growing from 100 companies in 2006, to more than 2,300 in 2019, with more than 86 trillion assets under management.  

Today, the sustainable investment industry is driven by the availability of better corporate sustainability data. To meet this need, S&P DJI offers a full spectrum of ESG benchmarks for diverse investment and objectives with ESG data that is transparent, flexible, and backed by two decades of investment decision-making experience.