LCL and Crédit Agricole CIB launch the first structured product designed to offset carbon emissions

To help investors make a tangible contribution to the decarbonisation of their investments, LCL and Crédit Agricole CIB are launching "LCL Net Zero Carbon March 2022".

Visuel créé pour la commercialisation du produit structuré "LCL Net Zero Carbon Mars 2022"

"LCL Net Zero Carbon March 2022" is a structured product that meets “European Benchmark Regulation” criteria which includes a mechanism to offset the investment’s residual carbon emissions. 

This joint initiative led by LCL and Crédit Agricole CIB is part of Crédit Agricole group’s Social Project, in particular its commitment to reach carbon neutrality by 2050.

“LCL Net Zero Carbon March 2022” is designed to meet the needs of investors - clients of LCL Private Banking and Wealth Management - who want to reduce their exposure to climate risks and seize the opportunities offered by the transition towards a low carbon economy.

It includes two levers to steer the energy mix towards a decarbonisation of energy consumption:

  • Reducing greenhouse gas emissions
  • Offsetting the investment’s residual CO2 emissions
     

Reducing greenhouse gas emissions

Indexed to the “MSCI Euro Climate Select 50 Paris Aligned 5% Decrement Index” the investment product primarily aims to reduce carbon footprint in compliance with the European Union’s decarbonisation trajectory. In line with the commitments of the Paris agreement and included in the European Benchmark Regulation, the “MSCI Euro Climate Select 50 Paris Aligned 5% Decrement Index” aims to immediately reduce the weighted average carbon intensity by 50%, followed by an additional 7% decarbonisation each year. In addition, it pursues a range of secondary goals, such as increasing the weight of companies in the index with clear carbon footprint reduction targets.

“LCL Net Zero Carbon March 2022” also includes the use of part of Crédit Agricole CIB’s portfolio of Eligible Green Assets, aiming to refinance projects that encourage the energy transition, the reduction of CO2 emissions, or promote the circular economy.

Offsetting the investment’s residual CO2 emissions

LCL and Crédit Agricole CIB have included an offsetting mechanism for the residual emissions of the investment by supporting the Yedeni project in Ethiopia, which aims to tackle deforestation in the Bale ecoregion. The carbon credits generated by this project, certified by one of the strictest international standards (Verified Carbon Standard - VCS), will be used to offset the residual CO2 emissions of the investment.
 


 

“LCL Net Zero Carbon March 2022” thus expands the “Climate Impact with LCL” programme launched in 2020 by LCL. It is the first comprehensive range of climate-friendly investments for wealthy and private banking clients.