Companies listed on the SIX Swiss Exchange can now apply for verification that they are aligning their business models and future plans with limiting global warming to 1.5°C.
Data and infrastructure provider SIX, which serves Spanish and Swiss markets, has launched a tool called SIX 1.5 °C Climate Equity to help investors identify those companies supporting the sustainable transition, as outlined in the Paris Agreement.
To earn the SIX 1.5 °C Climate Equity flag, a company must provide SIX with a confirmation from an approved reviewer that it meets all flag requirements. Currently, two approved reviewers are available: S&P and SGS.
The requirements for the confirmation consist of three assessments. The first is a top-down analysis of whether the company’s entire value chain aligns with the 1.5°C goal, by examining its future emissions reduction and removal targets. The second evaluates bottom-up whether it is credible that the company will continue to meet its targets. The third is an activity-level assessment that determines whether over 50% of the company’s current revenues and investments contribute towards the 1.5°C goal.
The flag is valid for one year and must be renewed annually with an updated confirmation.
SIX said it had defined the criteria based on established sustainability principles and the scientific consensus on climate science according to the Intergovernmental Panel on Climate Change. The emerging accordance among widely used methodologies and standards are reflected in these criteria, 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 continuously observes developments in this field and will refine its framework as necessary to ensure it remains current and effective.
Bjørn Sibbern, global head of exchanges and executive board member at SIX, highlighted: “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.”
