SINGAPORE -- The Singapore Exchange (SGX) on Monday launched futures on a climate index consisting of constituents from Japan's benchmark Nikkei 225, catering to environmentally conscious investors in Asia who want to contribute to decarbonization.
The SGX Nikkei 225 Climate PAB Futures is based on the Nikkei 225 Climate Change 1.5°C Target Index, which complies with the minimum standards of Paris-Aligned Benchmarks -- the index regulations of the European Union aimed at attaining the goals of the Paris climate agreement.
Created by Nikkei and U.S. investment technology and advisory company Wilshire, the underlying index is designed to halve the total greenhouse gas emissions of Nikkei 225 constituents in the first year by adjusting the number and weight of constituents. It targets a further decrease of 7% annually in the coming years.
Nikkei began calculating and publishing the index last May.