Euronext Launches CAC SBT 1.5° Index, Investing In Climate-Focused Companies

Euronext Launches CAC SBT 1.5° Index, Investing In Climate-Focused Companies - Carbon Herald
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A new climate-focused index was launched to accelerate the company’s involvement with the Paris Agreement goal of limiting global warming to up to 1.5°C. Euronext announced on January 12, the launch of the CAC SBT 1.5° Index (gross return Bloomberg code: CASBT15P) that invests solely in companies within the SBF 120 Index, having emissions reduction targets approved in line with the 1.5°C target.

According to the announcement, the new index will invest only in companies with emissions reduction targets validated by SBTi. The index will track the 120 most actively traded stocks listed in Paris. Its goal is to provide a climate-focused version of the CAC 40 and respond to the growing demand for sustainable investment tools from investors and from the market.

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Some of its constituents are: 

  • To incorporate negative screening and norm-based exclusion filters applied in accordance with the UN Global Compact Principles and exclude screening for companies involved in unconventional oil & gas, coal, controversial weapons and tobacco activities.
  • It comprises companies that have defined clear targets to reduce greenhouse gas (GHG) emissions in line with 1.5°C, which have been validated by the Science Based Targets initiative (SBTi).
  • It will evolve its methodology to integrate new EU regulations and standards as they emerge.
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  • The components of the index are free-float market capitalization-weighted.
  • The composition of the index will be revised on a quarterly basis.

The CAC SBT 1.5° index was also launched with the support of asset manager Amundi, climate research provider and environmental disclosure platform CDP, and of course, the Science Based Targets initiative (SBTi) that represents the gold standard for corporate climate goals.

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“The Euronext CAC SBT 1.5 index follows the stock performance of companies who have set clear and measurable targets to reduce greenhouse gas emissions, validated by the Science Based Target initiative. The launch of this index is a strong signal of the transition towards responsible investment,” said Stéphane Boujnah, CEO and Chairman of the Managing Board of Euronext N.V.

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