Index provider FTSE Russell, and climate risk analytics platform announced a new agreement to explore […]
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FTSE Russell, Planetrics to Launch Climate-Scenario Indices for Investors
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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