The EURO iSTOXX Ambition Climat PAB Index is based on liquid securities from the EURO STOXX Total Market Index. The index is constructed to follow the EU Paris-aligned Benchmarks (EU PAB) requirements outlined in the Commission Delegated Regulation (EU) 2020/1818 supplementing Regulation (EU) 2016/1011 of the European Parliament and of the Council as regards minimum standards for EU Paris-aligned Benchmarks.
The index is designed to help investors shift towards a low-carbon economy and align investments to the Paris Climate Agreement. Companies identified as non-compliant based on Sustainalytics Global Standards Screening (GSS) assessment, or are involved in anti-personnel mines, biological and chemical weapons, cluster weapons, depleted uranium and white phosphorus weapons or display a Severe (Category 5) Controversy Rating, as identified by Sustainalytics are not eligible for selection. Tobacco Producers and Distributors, as identified by ISS ESG, are also not eligible. Securities that generate revenues above a certain threshold from coal, oil and gas exploration or processing activities are excluded. Additionally, securities that derive more than 10% of their revenues from thermal coal based power generation, or more than 50% from power generation with carbon intensity of lifecycle emissions higher than 100gCO2e/kWh are not considered for selection.
The weighing process follows an optimization process to meet the minimum requirements detailed in the TEG report. The index aims to reduce its greenhouse gas intensity by at least 50% when compared to the benchmark. The index is also designed to meet the year on year 7% decarbonization target. Green to brown energy revenue share ratio of the index is at least four times that of the benchmark. The index ensures that high climate impact sectors are not underweighted relative to the benchmark. The index also overweighs securities with Science Based Targets, as verified by the Science Based Target initiative (SBTi).
Index Guides, Benchmark statement, and other reports are available under the Data tab.
Top 10 Components
|LVMH MOET HENNESSY||Consumer Products and Services||FR|
|L'OREAL||Consumer Products and Services||FR|
|SIEMENS||Industrial Goods and Services||DE|
|SCHNEIDER ELECTRIC||Industrial Goods and Services||FR|
|Kering||Consumer Products and Services||FR|