Solactive launches Climate Change Europe BTI Index with Barclays

By Megha Bhattacharya

German provider of financial indices, Solactive today announced the launch of Solactive Climate Change Europe BTI Index, in collaboration with Barclays. The index aims to meet the needs of investors looking to explore investment opportunities arising from the global move to a lower-carbon economy. It tracks European companies with low global warming impacts – measured in degrees Celsius – and maximizes investor exposure to companies with emission reduction targets.

Timo Pfeiffer, Chief Markets Officer, at Solactive said, “With ESG as the main trend in the markets, it is fair to say that climate transition strategies are those in the spotlight. Working with two close partners, the teams at Barclays and right. based on science with their innovative climate impact data, resulted in this investable index with improved degree Celsius impact traceable down to the individual company level.”

According to Solactive, the index is also designed to enhance return profiles by applying additional smart beta filters, only including stocks with both lower volatility and a consistent track record of growing dividends.

Arnaud Heckenroth, Head of Equities Structuring EMEA, at Barclays, said, “Climate-aware investment strategies have never been so important and Barclays is proud to have worked with Solactive to provide this efficient investment solution, uniquely aligned with the objective of the Paris Agreement to keep the increase in global average temperature to below 2°C above pre-industrial levels.”

Recently, Solactive secured a €50 million minority investment from growth equity firm Summit Partners. The new funding is expected to accelerate the company’s global growth, help in the expansion of product offerings and development of its technology platform and team.

Founded in 2007, Solactive offers customised index solutions for ETFs and other index-lined investments across equity, fixed income and multi-asset class strategies. The company’s solutions are used by around 400 international clients, including investment banks, ETF providers, hedge funds, asset owners and asset managers. It is headquartered in Frankfurt am Main, Germany, and has offices in Toronto, Hong Kong, Berlin and Dresden.