Index provider FTSE Russell, and climate risk analytics platform announced a new agreement to explore a new partnership to jointly develop climate-scenario based indices and analytics, aimed at enabling investors to embed climate insights into financial decision making. Founded in 2014, Planetrics provides advanced modelling of physical and transition climate impacts across a variety of […]
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FTSE Russell, Planetrics to Launch Climate-Scenario Indices for Investors - ESG Today
Abatify Summary
Nature & Climate Perspective
**Climate-scenario indices redirect capital flows toward projects that prioritize ecosystem resilience and LULUCF-integrated strategies by quantifying the physical risks of biodiversity loss. **
- Indices utilizing Planetrics data prioritize investments in assets with high 'Permanence' and 'Additionality,' mirroring ICVCM CCP standards for long-term carbon sequestration.
- The integration of climate scenarios incentivizes corporate land-use strategies that align with LULUCF frameworks to mitigate supply chain disruptions caused by extreme weather.
- The methodology favors nature-based solutions that demonstrate high ecological stability, potentially lowering the cost of capital for projects focused on Blue Carbon and reforestation.
Market & Policy Outlook
**This collaboration accelerates the transition from retrospective carbon footprinting to forward-looking, SBTi-aligned risk assessment, enhancing market liquidity for high-integrity transition assets. **
- The shift toward scenario-based indexing forces corporate transparency in Scope 3 emissions reporting, directly impacting eligibility for ESG-tilted financial products.
- By quantifying transition risks, these indices improve price discovery for Article 6.2/6.4 ITMOs by identifying which jurisdictions are most resilient to regulatory shifts.
- Alignment with 'Robust Quantification' principles from the ICVCM CCPs ensures that financial institutions can better manage transition risks while meeting strict B Corp or LEED institutional mandates.
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