Robeco Launches SDG Low-Carbon Indices

    Stockholm (NordSIP) – A new sustainable index family saw the light of day on 24 February, the Robeco SDG Low-Carbon Indices. As implied by the name, the new indices  aim to make a positive contribution to the UN Sustainable Development Goals (SDGs) and to a low-carbon economy. “We’re very excited to have launched the new set of indices for our clients,” says Joop Huij, Head of Sustainable Index Solutions at Robeco. “Our team works closely together with Robeco’s SI Center of Expertise to ensure the new indices will remain state-of-the-art, and we will keep innovating them for our clients,” he promises in the launch press release.

    The forward-looking view of Robeco’s Climate Strategy team, led by Lucian Peppelenbos, and the SDG Framework will be combined to lower the carbon footprint and to differentiate between climate laggards and climate leaders. “Launching these Indices and making them available to our clients is a tangible example of our efforts to combat climate change,” comments Peppelenbos. “The Indices go beyond traditional carbon data sources. By using input from my team and the SDG Framework, the Indices differentiate between climate laggards and climate leaders,” he adds.

    “Sustainable investing is shifting from avoiding ESG risks towards aligning with positive impact,” says Jan Anton van Zanten, SDG Strategist at Robeco. “Our SDG Framework identifies which companies are positively contributing to people’s wellbeing and environmental sustainability and therefore leading this shift and which are hindering progress,” he adds. The newly launched indices aim to obtain a significant carbon footprint reduction compared with market cap indices.

    The SDG Low-Carbon Indices build upon Robeco’s sustainability expertise and the firm’s index construction and delivery expertise. They offer a solution that combines two trends in the market: index investing and sustainable investing and are a sustainable alternative to passive market cap indices.

    Robeco’s indices will be fully transparent only to the clients so as to mitigate the risk of other market participants benefiting from public information. According to research done by Robeco previously, this is a real concern with publicly transparent indices.

    “We keep innovating in order to lower the climate risk in our clients’ investments,” concludes Peppelenbos.

    Image by PIRO4D from Pixabay

    Julia Axelsson, CAIA
    Julia Axelsson, CAIA
    Julia has accumulated experience in asset management for more than 20 years in Stockholm and Beijing, in portfolio management, asset allocation, fund selection and risk management. In December 2020, she completed a program in Sustainability Studies at the University of Linköping. Julia speaks Mandarin, Bulgarian, Hindi, Russian, Swedish, Urdu and English. She holds a Master in Indology from Sofia University and has completed studies in Economics at both Stockholm University and Stockholm School of Economics.

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