On Tuesday 26 March, MEPs approved by 579 votes to 40 against with 42 abstentions the political agreement reached at the end of February (see EUROPE 12202/12) on the proposed regulation creating a new category of benchmark indices to help investors compare the carbon footprint of investments (see EUROPE 11977/2).
The text actually adopts the name proposed by Parliament, namely the “EU Climate Transition Benchmark” instead of the “low-carbon” benchmark proposed by the Commission and supported by the EU Council. This is to be determined by taking into account companies that are following a measurable and scientific decarbonisation trajectory by the end of 2022.
“The EU Paris aligned benchmark” replaces the “positive impact carbon benchmark” (see EUROPE 12159/18), the objective of which is to select only those components that contribute to reducing global warming below 2 °C, as defined in the Paris Climate Agreement.
The text also introduces the obligation for benchmarks to explain how environmental, social and governance (ESG) factors are reflected in their investment strategy and how the methodology is aligned with the objective of reducing carbon emissions. The text also provides for transitional measures for critical benchmarks. (Original version in French by Marion Fontana)