Solactive is pleased to announce that it has assumed the role of index administrator for the JP Morgan Asset Management Carbon Transition Global Equity Index, effective 31 July 2025. This transfer of ownership and administration, initiated by J.P. Morgan Asset Management, reflects the firm’s alignment with the European Union’s Benchmarks Regulation (BMR), which mandates the use of EU-registered index administrators for financial products offered within the European Union.
The index, which tracks by the $1.2 billion JPM Carbon Transition Global Equity (CTB) UCITS ETF (JPCT), will be renamed the Solactive JP Morgan Asset Management Carbon Transition Global Equity Index upon the effective date. Solactive has served as the index’s calculation agent and will now also provide full index administration services in accordance with its ESMA registration.
Applied by the EU in 2018, the BMR aims to enhance the reliability and transparency of financial benchmarks. Under the regulation, administrators located outside the EU—so-called “third country” entities—must be either recognized or endorsed for their benchmarks to remain usable within the EU. With the final transition deadline set for 31 December 2025, this administrative change ensures the ETF remains fully compliant.1
The Solactive JP Morgan Asset Management Carbon Transition Global Equity Index is designed to align with the objectives of the EU Climate Transition Benchmark (CTB) regulation. It selects and weights companies from the Solactive GBS Developed Markets All Cap Index, aiming to meet key environmental criteria including an immediate 30% reduction in greenhouse gas (GHG) intensity compared to the investable universe and a minimum annual 7% decarbonization trajectory. The index applies a multi-layered screening process that excludes controversial sectors and companies violating key ESG norms, followed by the application of a proprietary Carbon Score framework. This framework incorporates a company’s current emissions profile and forward-looking decarbonization targets, with particular emphasis on Scope 1, 2, and 3 emissions. Sector neutrality and diversification constraints are also applied to maintain index representativeness and risk balance.
Timo Pfeiffer, Chief Markets Officer at Solactive, commented: “As a registered index administrator under ESMA supervision, we are proud to support J.P. Morgan Asset Management in maintaining regulatory compliance while advancing sustainable investment practices. This transition underscores Solactive’s commitment to providing reliable and regulation-aligned indexing solutions that enable our partners to meet evolving global standards.”
[1] Implementing and delegated acts – Benchmarks Regulation; European Commission
