Nature-linked Indexes Added to S&P Sustainability Benchmarks

S&P Dow Jones Indices has added another set of ESG-themed benchmarks to its roster, this time providing a gauge for nature-focused investors.

The S&P 500 Biodiversity Index and the S&P Global LargeMidCap Biodiversity Index are intended to provide broad views of the impacts companies are having on nature and vice versa.

The new suite follows the creation of a set of indexes that track corporate alignment with United Nations Sustainable Development Goals (SDG). The nature-linked indexes are calibrated to the COP15 Montreal biodiversity protection targets and built on S&P’s nature, biodiversity and carbon datasets as well as its SDG metrics.

“Research shows that 85 per cent of the world’s largest companies have a significant dependency on nature and biodiversity. This makes access to nature- and biodiversity-focused data, insights, and analytics essential in the support of market participants understanding, managing, and mitigating exposure of nature-related risks and impacts,” said Steven Bullock, global head of research and methodology at S&P Global Sustainable1, S&P’s ESG business unit.