As part of an effort to reduce the carbon footprint of its public investments by 25 per cent between now and 2025, the Fonds de solidarité FTQ has announced it will integrate the MSCI World Low Carbon ESG Target Screen Index.
This makes the Fonds de solidarité FTQ the first investor to announce integration with this index. It will use the index as a passively replicated benchmark for its public equities investments.
The MSCI World Low Carbon ESG Target Screen Index aims to reduce carbon exposure by at least 70 per cent compared to MSCI’s standard World Index.
“The Fonds de solidarité FTQ was looking for a benchmark that integrated both ESG and low carbon considerations, and MSCI delivered,” said Mario Tremblay, Vice-President for Public and Corporate Affairs at the Fonds de solidarité FTQ, and member of the Government of Québec’s COP24 delegation in a press release. “The new MSCI World Low Carbon ESG Target Screened Index shows that innovation can be part of the financial services industry’s efforts to combat climate change. This new index will be an important part of our efforts to reduce the Fonds’ carbon footprint, while doing our part to ensure that the energy transition is just and equitable for all workers and communities.”