Climate indices are specialized stock
market indices designed for passive investors seeking to invest in companies
that incorporate climate change considerations into their business strategies.
These indices serve as benchmarks for integrating climate change into
securities selection, portfolio construction, and risk management. Globally
recognized climate indices include the FTSE Global Climate Index, S&P
Paris-Aligned & Climate Transition (PACT) Index, and The MSCI Climate
Change Index. In India, the development of climate indices is still in its
early stages. Notable Indian climate-related stock indices include S&P BSE
GREENEX and S&P BSE CARBONEX.