By Susanna Rust2021-05-06T11:02:00+01:00 Some €9bn of German federal pension assets are due to be reallocated to equity indices aligned with the EU Climate Transition Benchmark (CTB) as part of the government’s sustainable finance strategy, it was announced yesterday. S&P Dow Jones Indices said it had been chosen by the government to develop the index, which would be used for four federal civil service funds. The EU CTB is one of two types of climate benchmarks for which the EU has developed minimum standards. The other is the EU Paris-Aligned Benchmark (PAB). The CTB requires a lower baseline reduction of greenhouse gas intensity relative to the market-weighted investable universe than the PAB. Another difference is that a CTB-compliant benchmark does not have to exclude fossil fuels based on certain thresholds.