European market infrastructure provider Euronext announced today the launch of two new indices investing solely 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 indices, the Euronext Europe SBT 1.5° and the Euronext Eurozone SBT 1.5°, follow on from the launch of CAC SBT 1.5° earlier this year, and are the company’s 27th and 28th climate indices. The new indices will track companies within the Europe 500 and the Eurozone 300 indices, respectively, while exclusively targeting companies with clear emissions reduction targets validated by the SBTi, in addition to applying exclusions for areas such as unconventional oil & gas, coal, controversial weapons and tobacco activities.
Stéphane Boujnah, CEO and Chairman of the Managing Board of Euronext N.V., said:
“The launch of the Euronext Europe SBT 1.5° and Euronext Eurozone SBT 1.5° indices is a first major step towards expanding the family of Euronext’s climate indices, after the successful launch of the CAC SBT 1.5°. This launch demonstrates our strong commitment to our “Fit For 1.5°” and Growth for Impact 2024 strategy.”
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.
Luiz Amaral, Chief Executive Officer at the SBTi, said:
“The success of and expansion of these indices demonstrate demand for investment opportunities that drive corporate climate ambition and action in line with science. We expect other indices to follow suit – helping to make science-based targets business as usual worldwide.”