Introduction of ESG benchmarks was aimed at standardising and enhancing transparency of benchmark methodologies across the EU to help orient the choice of investors that intend to adopt a climate-conscious investment strategy. In order for a benchmark to be labelled as an EU Climate benchmark, minimum technical standards, such as reduction of carbon emissions year-on-year & large exposure to sectors that highly contribute to climate goals, have to be met.

Following a regulatory initiative by the Commission in 2018, co-legislators have adopted two low carbon benchmarks – EU climate transition benchmarks and EU Paris-aligned benchmarks, that entered into full application in April 2020. Alongside the two benchmarks, the EU adopted sustainability-related disclosure requirements for benchmarks, including disclosure on the alignment with the Paris agreement.

Deutsche Börse Group has welcome introduction of two benchmarks and an increased level of transparency and comparability on the products offered to the public.

For further information on Deutsche Börse Group’s positioning on the matter, find our statements and position papers under Publications.