Crédit Agricole CIB creates an innovative investment solution aligned with the Paris Agreement

These financial products are linked to a new climate index, aligned with the European Union’s commitments following the Paris Agreement.

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The Equity Solutions team is bolstering Crédit Agricole’s climate strategy and helping investors make an effective contribution to decarbonising their investments through a range of financial products fully eligible for the European “Paris-Aligned Benchmark” label. 

An index with a high climate impact 

These financial products are linked to a new climate index. This climate index, aligned with the European Union’s commitments following the Paris Agreement, is based on a methodology that first eliminates companies involved in controversial weapons, tobacco and thermal coal as well as those deriving substantial revenue from oil- and gas-related activities. The remaining companies are then reweighted based on their risks and opportunities associated with climate transition.

Compared with a traditional index, the index also targets an immediate 50% reduction in weighted average carbon intensity followed by further decarbonisation at a rate of 7% per year. Lastly, it seeks to achieve a series of secondary targets such as maximising exposure to sustainable energy suppliers, increasing the weighting of companies with clear carbon emissions reduction targets and minimising exposure to fossil fuels.

The MSCI Euro Climate Select 50 Paris Aligned 5% Decrement Index, 99% correlated with the flagship Euro Stoxx 50 index, can be accessed via Bloomberg and the MSCI website. Its rules and calculation methodology are also available to all investors on the MSCI website.

Further tangible evidence of Crédit Agricole CIB’s and the Crédit Agricole Group’s commitment to abide by the Paris Agreement

The alignment of Crédit Agricole’s climate strategy with the Paris Agreement is clearly reflected in both the Group’s financing strategy, whether as a lender or an arranger, and its third-party investment policy. 

With this in mind, Crédit Agricole CIB committed to grow its green loan book to €13 billion by 2022. To achieve this target, Crédit Agricole CIB put in place an incentive scheme to support green loan origination and now has an €11 billion portfolio of green loans.

Moreover, in 2021 Crédit Agricole CIB was appointed to manage a number of structured investment portfolios on behalf of European investors through a structured equity investment solution aligned with the Paris Agreement. Through this new solution, the Group is playing a pioneering role across this new range of financial products.