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HISTORICAL EXTRA-FINANCIAL IMPACT

FREQUENTLY ASKED QUESTIONS

How can I check my investor carbon footprint?

How can I have access to the metholodgy details?

  • The Ethical Europe Climate Care Index methodology is completely transparent and is available in the Guideline document.

How can I follow the performance of the index and its composition?

  • In the Index performance section you can consult the live performance of the Index as well as its latest composition.
  • We also invite you to download the latest Factsheet.

What is Vigeo Eiris rating?

  • Vigeo Eiris rating, utilizing its teams’ expertise and its unique and well-regarded methodologies, offers a large range of products and services designed for investors and asset managers engaged in sustainable and responsible investment practices. This research covers more than 4,000 issuers, including companies, regions and states and is used by more than 300 clients, partners, investors, asset managers, NGOs and international institutions. Vigeo and EIRIS services and methodologies adhere to the strictest quality standards and have been certified to the independent ARISTA® standard, the leading quality standard for research in responsible investment. For more information: www.vigeo.com et www.eiris.org

Where does carbon data come from?

  • The carbon data is provided by the CDP (Carbon Disclosure Project) and completed with other sources collected by Vigeo (Annual reports, CSR reports, corporate websites, issuer contacts, etc.).
  • When no data is available from any source, Vigeo’s analysts build a carbon footprint estimation relying on the size of the issuer and the nature of its activities.

What are scopes 1, 2 and 3?

  • Scope 1 covers direct greenhouse gas emissions occurred from sources that are owned or controlled by the issuer, for example, emissions from combustion in owned or controlled boilers, furnaces, vehicles, etc.; emissions from chemical production in owned or controlled process equipment.
  • Scope 2 covers indirect GHG emissions caused by the organization’s consumption of electricity, heat, cooling or steam purchased or brought into its reporting boundary.
  • Scope 3 covers other indirect emissions from all the value chain: business and commuting travels, transportation, scope 1 and 2 emissions from suppliers, emission from waste treatment, from customers use of sold products, etc.
  • A company emissions rating is based on scopes 1 and 2.

Why do you consider companies on absolute figures of emissions and not figures adjusted to the company's market capitalisation?

  • With a ranking adjusted to the market capitalisation, there would be a risk of selecting companies responsible of a high volume of GHG emissions. Figures adjusted to market capitalisation do not reflect the company’s actual impact on the environment. A large market capitalisation does not justify large CO2 emissions.
  • For example, with an adjusted ranking, EDF would rank relatively well due to the major share of nuclear in its energy mix (a relatively low source of direct GHG emissions) while its absolute emissions remain very high because of the significant number of facilities which rely on coal.

Is there a risk to select a small pure fossil player?

  • The scale has been designed to avoid identifying a small pure fossil player as a low carbon emitter.
  • A small company with high emissions compared to its market cap (for example, a small pure fossil company) cannot be ranked “A” or “B”: the scale has been designed in a way pure fossil companies, although very small, would be identified with, at least, a high carbon footprint.
  • For example, in June 2015, the only electricity producer with an “A” (or “B”) grade was Enel Green Power, a company specialised in renewable energies and that has the lowest emissions in both absolute and relative terms. Conventional electricity producers are rated “C” or “D”, even with small market capitalisations.

Is it possible to select a company with intense carbon emissions?

  • A company with intense carbon emissions can be selected in the Index if it has the strongest energy transition strategy in its sector.
  • Intense emitters selected in the Index will receive an engagement letter asking for the company’s commitment on exemplarity and progress on specific issues. The letters, as well as the company’s commitment letters are available on this website in the Engagement letters .zip file.

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