Euronext SBT index launch sends ‘strong signal’ to responsible investors

Amundi planning ETF to replicate new climate index

European stock exchange group Euronext has launched a “trailblazing” index that invests only in SBF 120 companies that have 1.5°C Paris-aligned emissions reduction targets validated by the Science Based Targets initiative (SBTi).

The CAC SBT 1.5° uses negative screening and SBTi data to identify companies and said it will “evolve to integrate new EU regulations and standards as they emerge”. The typical SBTi-approved company has cut its annual emissions (Scope 1 and 2) at a linear rate of 8.8% since setting targets.

Luiz Amaral, CEO at the SBTi said “this trailblazing index makes it easy for institutions and individuals to invest in the growing number of businesses that are committed to reducing emissions by the amount needed to keep global heating below 1.5°C. I hope it is the first of many similar indices in different markets and I look forward to following its success.”

Stéphane Boujnah, CEO and chair of the managing board of Euronext N.V. said the launch of the index was a “strong signal” for transitioning towards responsible investment.

“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,” Boujnah said.

Fannie Wurtz, head of distribution and wealth division, passive and alternative business lines at Amundi, added: “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. We welcome Euronext’s initiative and plan to launch an ETF replicating this new climate index.”