European market infrastructure provider Euronext announced today the launch of a new index investing in companies with climate goals approved by the Science Based Targets initiative (SBTi) as in line with the 1.5°C goal of the Paris Agreement.
The new index, CAC SBT 1.5°, was launched with the support of asset manager Amundi, climate research provider and environmental disclosure platform CDP and SBTi.
Founded in 2015, as a collaboration between CDP, World Resources Institute (WRI), the World Wide Fund for Nature (WWF), and the United Nations Global Compact (UNGC), SBTi has emerged as one of the key organizations focused on aligning corporate environmental sustainability action with the global goals of addressing and limiting climate change. In 2021, the initiative launched a Net Zero Standard to assess and certify companies’ commitments to achieve net zero emissions, with stringent criteria typically requiring decarbonization of 90-95% by 2050, with neutralization of residual emissions that are not yet possible to cut.
SBTi CEO Luiz Amaral said:
“Science-based targets enable companies to send a clear signal that they are serious about tackling the climate crisis and investors to see which businesses are taking ambitious corporate climate action. This trailblazing index makes it easy for institutions and individuals to invest in the growing number of businesses which are committed to reducing emissions by the amount needed to keep global heating below 1.5°C.”
According to Euronext, the new index will invest only in companies with emissions reduction targets validated by SBTi as in line with 1.5°C within the SBF 120 Index, which tracks the 120 most actively traded stocks listed in Paris. In addition to the climate requirement, the index will also apply screening based on UN Global Compact principles, as well as exclusions for companies involved in unconventional oil & gas, coal, controversial weapons and tobacco activities.
Stéphane Boujnah, CEO and Chairman of the Managing Board of Euronext, said:
“The launch of this index is a strong signal of the transition towards responsible investment. As part of the ‘Fit for 1.5’ commitment in our Growth for Impact 2024 strategy, Euronext is playing a crucial role in empowering sustainable finance across all its markets and in supporting the allocation of capital to sustainable initiatives through the launch and publication of ESG indices.”
Alongside the introduction of the new index, Amundi’s Head of Distribution & Wealth Division, Passive & Alternative business lines Fannie Wurtz said that the firm aims to launch an ETF based on the new index.
“We strongly believe that asset managers have a role to play in helping channel investment flows towards the climate transition and that ETFs in particular, through their accessible and transparent nature, can democratise access to responsible investments.”