The EU’s official criteria for climate-focused indices were launched in 2020, after a fractious development period which saw EU bodies being accused of conflicts of interest and sidelining market best practice.
Less than a year later and the first-of-their-kind Climate Benchmarks have emerged as an unlikely success story within the EU’s Action Plan on Sustainable Finance - at least in terms of market acceptance.
In 2021 alone, the Climate Benchmarks criteria has been adopted by the likes of Swedish pension fund AP2, French pension fund Ircantec, asset manager Handelsbanken Fonder, the workplace pension scheme for Dutch company UWV, four German public pension funds and the UK’s Brunel Pension Partnership. Altogether, tens of billions of Euros have been shifted into investments that meet the EU’s climate objectives via instruments based on the Climate Benchmarks.
And its impact has gone beyond passive investing: Banque de France recently ad…