European market infrastructure provider Euronext announced the launch of the CAC PAB Index, adding a climate-focused Paris Agreement aligned benchmark to its CAC Index suite.

Indices that are labelled as Paris-aligned Benchmarks (PABs) under EU rules must meet criteria for asset selection that results in the index aligning with the long-term climate goals of the Paris Agreement. Criteria include a minimum reduction in greenhouse gas (GHG) emissions intensity of at least 50% compared to the market index, with annual GHG emissions intensity reductions of at least 7%.

Developed in collaboration with Crédit Agricole CIB, the new index selects 30 companies from the CAC Large 60 Index, which consists of largest 60 companies listed on the Euronext Paris exchange. Selection criteria incorporate greenhouse gas intensity constraints and trajectory objectives, ensuring alignment with global climate goals and the Paris Agreement climate ambition. According to index documents, the carbon footprint of the index at launch, across Scope 1, 2, and 3 emissions, is 66% lower than the CAC Large 60 benchmark.

In a post announcing the index, Euronext said that the new launch comes “in response to the growing demand for investment solutions that prioritise climate considerations.”

Euronext added:

“By selecting companies that meet rigorous environmental standards, we aim to promote environmental responsibility within the financial sector. The launch further supports our unwavering commitment to a sustainable future and working towards climate ambition targets for a 1.5°C world.”