Quantify Climate Risks – Optimize Your Portfolio
This Solactive index concept utilizes the Saltmarsh Economics Climate Index (SECI), which provides an innovative approach to assessing climate risks at a sovereign level. By analyzing over 60 indicators across four key categories – emissions & energy, physical climate risks, macroeconomic resilience, and institutional strength & human capital – SECI enables climate risk-adjusted allocation in government bond portfolios.
Saltmarsh Economics Climate Index (SECI)
Leverage SECI for Sustainable Investment Strategies
- Identify climate-related investment risks early.
- Manage your portfolio with a scientifically backed methodology.
- Drive sustainable capital flows into climate-resilient markets.
Why SECI?
- Data-Driven & Comprehensive: Over 60 indicators sourced from reputable organizations such as the IMF, World Bank, UN, and Eurostat.
- Risk-Based Scoring: Countries are ranked based on their ability to absorb and adapt to climate risks.
- Optimized Portfolio Allocation: Country weights are adjusted to reduce climate-related risks.
- Enhanced Climate Metrics: SECI can lower the Weighted Average Carbon Intensity (WACI) of a portfolio by up to 15% compared to the benchmark.
How Does SECI Work?
- Physical Climate Risks: Evaluates exposure to floods, droughts, heatwaves, and rising sea levels.
- Emissions & Energy Use: Assesses CO₂ emissions, renewable energy reliance, and government subsidies.
- Macroeconomic Stability: Incorporates debt burdens, growth potential, and fiscal resilience.
- Innovation & Institutional Strength: Measures governance quality, education, research & development.
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