FTSE Russell, the global index provider owned by the London Stock Exchange Group (LSEG), and Planetrics, SLR’s climate-risk analytics platform, have signed a Memorandum of Understanding (MoU) to jointly develop a new suite of climate-scenario based indices and analytics.
The collaboration will combine FTSE Russell’s global index architecture and commercial reach with Planetrics’ proprietary modelling tools, which simulate how physical climate shocks and economic transition risks impact corporate performance.
Under the proposed agreement, Planetrics will provide its physical and transition risk models to support the construction of indices across multiple asset classes. The toolsets are designed to trace how changing climate variables, altered supply chains, and evolving regional regulations affect asset values at an individual company level.
“This collaboration reflects where the market needs to go, from acknowledging climate risk to actually pricing it,” said Thomas Bremner Bligaard, Executive Director at Planetrics. “Our modelling captures a range of plausible futures, including physical shocks and uneven transitions across regions and sectors. That granularity translates into portfolio signals precise enough to support better allocation decisions and stronger risk management.”
The two organisations will collaborate on the underlying analytical frameworks and data inputs, while FTSE Russell will retain sole responsibility for the governance, administration, and commercial distribution of the co-developed index products.
The first collaborative index products are anticipated to launch later this year, targeting institutional investors looking to align portfolios with complex decarbonisation pathways.
Stephanie Maier, Head of Sustainable at FTSE Russell, highlighted the market-driven nature of the partnership. “As climate considerations continue to drive the investment landscape, we are delighted to be collaborating with Planetrics as we continue to innovate to the needs of the market,” Maier said. She noted that the initiative reinforces the firm’s commitment to creating transparent, research-backed indices that assist clients in navigating the low-carbon transition.
The partnership underscores a broader trend within sustainable finance to move past simple carbon footprinting metrics toward dynamic, forward-looking scenario analysis required by international sustainability reporting standards.
