Company SIX Launches Climate Flag to Highlight Paris Agreement Compliant Stocks

SIX, a major European stock exchange and financial services provider, has introduced a new initiative to aid investors in making more informed decisions about climate change. The 'SIX 1.5°C Climate Equity' flag is designed to help investors identify companies that align with the Paris Agreement's goal of limiting global warming to 1.5°C above pre-industrial levels.

The criteria for the flag are based on established sustainability standards and scientific consensus on climate change. Companies listed on the SIX Swiss Exchange can apply for the voluntary flag, which requires confirmation from approved reviewers S&P or SGS and must be renewed annually.

To earn the flag, companies must undergo a three-part assessment evaluating their entire value chain's alignment with the 1.5°C goal, the credibility of their emissions targets, and whether over 50% of their revenues and investments contribute to this objective.

Bjørn Sibbern, Global Head Exchanges at SIX, stated that the new flag is intended to boost the visibility and reputation of companies that are taking meaningful steps towards a sustainable future.

The flag is part of SIX's broader sustainability strategy and reflects Switzerland's growing commitment to environmental stewardship. The Swiss Federal Council recently announced consideration for a closer alignment with the European Sustainability Reporting Standards and the International Sustainability Standards Board (ISSB) on a national level.

As of the current information, the data provider has not disclosed which companies will apply for the flag status, but a number of companies have shown interest. The search results do not provide specific information about which companies have expressed interest in the application for the SIX 1.5°C Climate Flag.

The flag is expected to aid investors in making more informed decisions by reducing uncertainty about a company's climate emissions trajectory, ultimately contributing to a more sustainable future for all. The concept for the flag was developed through extensive discussions with listed companies, audit and legal firms, sustainability experts, and industry associations.