By Maitane Sardon

 

The Church of England Pensions Board said Thursday that it is investing 600 million pounds ($780.8 million) in a new passive index backing the Paris climate goals.

The FTSE TPI Climate Transition Index was developed by the Church of England Pensions Board, index provider FTSE Russell and the Transition Pathway Initiative, an investor-led initiative that has developed an online tool to assess how companies are positioned for the transition to a low-carbon economy.

The launch of the index responds to calls by the governor of the Bank of England for funds to address climate change's financial risks, the Church of England said.

The church said the index will underweigh companies with fossil-fuel reserves and will overweigh or underweigh companies according to their greenhouse-gas emissions. Companies that have targets aligned with the Paris Agreement will have higher weighting in the index.

"The message is clear to all publicly listed companies: put in place targets and strategies aligned to Paris and be rewarded with inclusion in the index or work against the long-term of interests of beneficiaries and wider society and be excluded," said Adam Matthews, Director of Ethics and Engagement for the Church of England Pensions Board.

 

Write to Maitane Sardon at maitane.sardon@wsj.com

 

(END) Dow Jones Newswires

January 30, 2020 07:59 ET (12:59 GMT)

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