SIX introduces new climate equity flag for investors
22 August 2024 Switzerland
Image: AA+W/stock.adobe.com
SIX has launched a new ‘SIX 1.5°C Climate Equity’ flag in a bid to help investors identify companies whose business models align with limiting global warming, as outlined in the Paris Agreement.
To attain the flag, firms must provide SIX with confirmation from an approved reviewer, of which two are currently available — S&P and SGS. Once a firm receives approval, the flag remains valid for a year, after which it must be renewed with updated confirmation.
Firms will be evaluated through a series of assessments to retain confirmation. This includes an analysis of the company’s emissions reduction and removal targets, to examine whether it is credible that the company currently aligns with the 1.5°C target and will continue to do so.
SIX has based these criteria on established sustainability principles and methodologies, such as the Climate Bonds Initiative (CBI) and the UN Race to Zero Starting Line criteria. All companies currently listed on the SIX Swiss Exchange will now be eligible to apply for the flag.
Bjørn Sibbern, global head exchanges and executive board member at SIX, comments: “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.”
To attain the flag, firms must provide SIX with confirmation from an approved reviewer, of which two are currently available — S&P and SGS. Once a firm receives approval, the flag remains valid for a year, after which it must be renewed with updated confirmation.
Firms will be evaluated through a series of assessments to retain confirmation. This includes an analysis of the company’s emissions reduction and removal targets, to examine whether it is credible that the company currently aligns with the 1.5°C target and will continue to do so.
SIX has based these criteria on established sustainability principles and methodologies, such as the Climate Bonds Initiative (CBI) and the UN Race to Zero Starting Line criteria. All companies currently listed on the SIX Swiss Exchange will now be eligible to apply for the flag.
Bjørn Sibbern, global head exchanges and executive board member at SIX, comments: “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.”
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