What are SBTi-validated ESG Bonds?
ESG Bonds issued by SBTi-validated issuers go through a dual selection process to be included in the section:
- Bonds must be aligned with recognised sustainable standards, such as the ICMA Principles, and must have received a second-party opinion;
- Issuers must have an SBTi-validated 1.5°C target, in line with the Paris agreement to strive to keep climate change to 1.5°C above pre-industrial levels (companies with targets of 2°C or well-below 2°C are excluded).
The new SBTi 1.5°C ESG Bond issuers section of our platform is designed to promote the climate commitment of our ESG bond issuers with a target validated by the Science Based Targets initiative, or SBTi.
What is the Science Based Targets initiative (SBTi)?
"The SBTi defines and promotes best practices in science-based target setting. Offering a range of target-setting resources and guidance, the SBTi independently assesses and approves companies’ targets in line with its strict criteria.
Targets are considered ‘science-based’ if they are in line with what the latest climate science deems necessary to meet the goals of the Paris Agreement – limiting global warming to well-below 2°C above pre-industrial levels and pursuing efforts to limit warming to 1.5°C."
Why are these bonds 'best-in-class'?
The new SBTi 1.5°C ESG Bonds Issuers section builds a bridge between issuers’ climate strategies and their sustainable bond issuances. By linking their green financial planning with their overall sustainable strategy, SBTi-aligned issuers of ESG Bonds can demonstrate that their ESG goals are supported by committed funding. This gives investors even greater certainty on the way the proceeds from these bonds will be used.
By setting necessarily ambitious climate targets which are science-based and externally verified, these companies demonstrate that the proceeds from their sustainable bonds will finance a pathway toward a low-carbon future.
Fit for 1.5°: Euronext’s ESG commitment
Euronext’s sustainability strategy focuses on accelerating climate action both in Euronext’s operations and through the role it plays in empowering sustainable finance across all its markets.
“Fit for 1.5°” is Euronext’s climate commitment and it is based on the development of services and products that help its business, partners, clients and the wider European economy to curb the increase in global temperatures, helping to ensure this increase remains below 1.5°C compared to pre-industrial levels, as set out in the Paris Agreement. This will be achieved by developing further services and products that help investors and issuers engage in the transition to a sustainable economy.
“Fit for 1.5º” is part of Euronext’s overall ESG strategy, and is one of the pillars of the Group’s “Growth for Impact 2024” strategy.