SIX Launches 1.5°C Climate Equity Flag for Investors
Key Takeaways
SIX has launched the ‘SIX 1.5 °C Climate Equity’ flag to help investors find companies that are 1.5°C aligned.
Companies must be reviewed by an approved reviewer to get the flag, which is valid for 1 year.
The flag criteria include emissions reduction targets, credibility of targets and revenue alignment with 1.5°C.
The flag criteria are based on established sustainability principles and scientific consensus.
SIX has released the new ‘SIX 1.5 °C Climate Equity’ flag to help investors find companies whose business models and future strategies are 1.5°C.
Companies listed on the SIX Swiss Exchange can apply for this flag.
To get the flag, companies need to provide a confirmation from an approved reviewer that they meet all requirements. Currently, two approved reviewers—S&P and SGS—are available. The flag is valid for 1 year and needs to be renewed annually with an updated confirmation.
The criteria to get the flag involve three assessments:
First, a top-down assessment checking if the whole value chain of the company is 1.5°C aligned, including future emissions reduction and removal targets.
Second, a bottom-up assessment to check the credibility of the company to meet its targets.
Third, an activity-level assessment to check if more than 50% of the company’s current revenues and investments are 1.5°C aligned.
The criteria are based on established sustainability principles and climate science outlined by the Intergovernmental Panel on Climate Change (IPCC).
It is aligned with widely used methodologies and standards, including the Carbon Disclosure Project Assessing Low-Carbon Transition initiative (CDP ACT initiative), the Climate Bonds Initiative (CBI), the UN Race to Zero Starting Line Criteria and the WFE Green Equity Principles (2023). SIX will review and update the framework as needed to stay relevant and effective.
Bjørn Sibbern, Global Head Exchanges and Executive Board Member at SIX, says: “Our new flag serves as a tool to enhance the visibility and reputation of companies. This in turn supports investors in making more informed decisions, reducing uncertainty around a company’s current and future climate emissions trajectory. We developed the concept for the flag following extensive exchange with listed companies, audit and legal firms, sustainability experts as well as industry associations and it represents a further step in our sustainability strategy.”
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Source: SIX
