Natural resources companies are prominent constituents of the FTSE UK Index, resulting in a relatively high carbon emissions and carbon reserves intensity score for the index. At the same time, the UK index has a fairly high ESG rating overall, with very few stocks averaging a higher ESG rating and low carbon emissions intensity at the same time.
This creates a challenge for investors looking to construct benchmarks that have a high ESG rating, and a low carbon reserves and carbon emissions intensity. In this paper, we investigate how to resolve this conundrum for the FTSE UK Index and find:
You can now read the full whitepaper at the link below