INDICES CLIMATIQUES : L’Union Européenne passe à côté de l’Accord de Paris

The document critiques the EU's introduction of the Paris Aligned Benchmark (PAB) and Climate Transition Benchmark (CTB), stating they fail to require absolute greenhouse gas emission reductions or exclude companies developing new fossil fuel projects. It highlights the risk of greenwashing in passive index management, where over 20% of global assets are managed, and proposes four sets of stricter criteria for financial institutions to achieve genuine climate alignment.

• The EU's climate benchmark regulations are considered insufficient because neither the PAB nor the CTB requires an absolute reduction in greenhouse gas emissions, focusing instead on carbon intensity.
• The Climate Transition Benchmark (CTB) uses a 'best-in-class' approach that does not exclude any specific activities, allowing fossil fuel companies to remain in the index even if they increase investments in those sectors.
• While the Paris Aligned Benchmark (PAB) includes sectoral exclusions for coal (over 1%), oil (over 10%), and gas (over 50%) based on revenue, it fails to exclude companies developing new fossil fuel projects if their activities are sufficiently diversified.
• Passive index management represents a significant 'blind spot' in climate alignment, accounting for over 20% of global managed assets, with approximately $10 trillion invested in index funds.
• To achieve real alignment with a 1.5°C trajectory, the report recommends implementing absolute emission reduction targets of at least 7%, excluding new fossil fuel exploration/exploitation, and phasing out oil and gas by 2040 in OECD/European countries and 2050 elsewhere.

APA

Cuvelier, L., Pinson, L., & Schreiber, P. (2020). INDICES CLIMATIQUES : L’Union Européenne passe à côté de l’Accord de Paris. Reclaim Finance. https://reclaimfinance.org/site/wp-content/uploads/2020/11/Note-indices-climatiques-lunion-europeenne-passe-a-cote-de-laccord-de-paris.pdf

Chicago

Cuvelier, Lara, Lucie Pinson, and Paul Schreiber. INDICES CLIMATIQUES : L’Union Européenne passe à côté de l’Accord de Paris. Reclaim Finance, 2020. https://reclaimfinance.org/site/wp-content/uploads/2020/11/Note-indices-climatiques-lunion-europeenne-passe-a-cote-de-laccord-de-paris.pdf.

Wikipedia

{{cite report |last1=Cuvelier |first1=Lara |last2=Pinson |first2=Lucie |last3=Schreiber |first3=Paul |title=INDICES CLIMATIQUES : L’Union Européenne passe à côté de l’Accord de Paris |publisher=Reclaim Finance |date=November 2020 |url=https://reclaimfinance.org/site/wp-content/uploads/2020/11/Note-indices-climatiques-lunion-europeenne-passe-a-cote-de-laccord-de-paris.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{cuvelier2020indices, author = {Cuvelier, Lara and Pinson, Lucie and Schreiber, Paul}, title = {{INDICES CLIMATIQUES : L’Union Européenne passe à côté de l’Accord de Paris}}, institution = {Reclaim Finance}, year = {2020}, month = nov, url = {https://reclaimfinance.org/site/wp-content/uploads/2020/11/Note-indices-climatiques-lunion-europeenne-passe-a-cote-de-laccord-de-paris.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }