Amundi has partnered with Euronext, the Science Based Targets initiative (SBTi) and non-for-profit CDP to launch Europe’s first CAC 40 climate ETF.
Europe’s largest asset manager helped develop the CAC SBT 1.5° index with Euronext which currently invests in 38 of the most climate-friendly companies in the SBF 120, an index made up of all 40 stocks in the CAC 40 and other French-listed equities.
To be included in the CAC SBT 1.5° index, companies must have clear targets to reduce greenhouse gas emissions in line with 1.5°C as defined by SBTi.
According to Euronext, the typical SBTi-approved company has cut its annual Scope 1 and 2 emissions at an 8.8% rate since setting targets.
The index also excludes companies that violate the UN Global Compact Principles as well as those involved in unconventional oil and gas, coal, controversial weapons and tobacco activities.
The index is free-float market-cap weighted and rebalanced on a quarterly basis.
Fannie Wurtz (pictured), head of distribution and wealth division, passive and alternative business lines at Amundi, said the firm plans to launch an ETF replicating this new index.
Wurtz added: “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.”
Stéphane Boujnah, CEO and chairman of the managing board of Euronext, said: “The index follows the stock performance of companies who have set clear and measurable targets to reduce greenhouse gas emissions, validated by the SBTi.
“The launch of this index is a strong signal of the transition towards responsible investment.”
Luiz Amaral, CEO of SBTi, concluded: “Science-based targets enable companies to signal that they are serious about tackling the climate crisis and investors to see which businesses are taking ambitious corporate climate action.”
In August, 2021, Euronext partnered with Amundi to create the CAC 40 ESG index which identifies 40 French equities that score best from an ESG perspective.