CME Group – Snehasish Maitra – 2024

Summary

Snehasish undertook a fellowship in the Research and Product Development team at CME Group. In this fellowship, he focused on carbon accounting of commodity futures in energy, agriculture, and metals indices. By integrating carbon metrics, financial markets can support sustainability efforts, improve transparency, and help manage climate risks. During his fellowship, he compared two methodologies: Bloomberg’s Carbon Tilted Indices, which adjust sector weights by the carbon intensity of the respective commodities, and the S&P GSCI Climate Aware index, a production-weighted index that factors in Scope 1-3 emissions.

Goals

Both methodologies aim to offer investors diversified commodity exposure while addressing the environmental impact of commodity markets. The Research and Product Development team conducts research across commodity markets to better understand risk management needs within the industry. The goal was to compare Bloomberg’s Carbon Tilted Indices and the S&P GSCI Index based on various metrics.