CO2 intensity in the Swiss equity market down by 30% within a year

Sharp drop in CO2 emissions in the SPI Index in 2023

Last year, the Swiss Performance Index (SPI) recorded a considerable decline in its CO2 emissions. The CO2 intensity, i.e. the ratio of CO2 emissions to turnover, fell from 111 to 77 units per unit of turnover. This corresponds to a decrease of around 30%. At the same time, the CO2 footprint, the ratio of CO2 emissions to company value, fell from 52 to 43 units, which corresponds to a decrease of almost 16%.

The calculation of CO2 intensity and the CO2 footprint is based on methods in which the CO2 emissions of a company are divided by its turnover or company value. This can lead to these figures being influenced by financial metrics such as turnover or company value without changing the actual emissions. It is possible that CO2 intensity decreases if turnover grows faster than CO2 emissions. While this may present a positive picture, it still has a negative impact on the climate and the environment. In the case of the SPI Index, however, this is not the case. Total CO2 emissions fell by around 25% in 2023, which clearly shows that the reduction in CO2 figures was not achieved due to higher sales or company values, but actually through more climate-friendly business activities.

Holcim and Nestlé as driving factors behind the SPI's CO2 reduction

Holcim and Nestlé played a decisive role in this. Together, they were responsible for around 85% of the index's CO2 intensity in January 2023. Holcim reduced its CO2 intensity by 38%, from 4,278 to 2,631, while Nestlé achieved a 25% reduction from 52 to 39 units of CO2 per unit of sales. At the end of 2023, Holcim's and Nestlé's CO2 intensity only accounted for around 78% of the index, which is a further indication that these two companies have contributed disproportionately to the reduction in CO2 emissions compared to the overall index. This development shows the effectiveness of targeted measures to reduce CO2 emissions in companies and the effectiveness of long-term sustainability strategies.

Recognizing the need and urgency of an improved environmental profile, both Holcim and Nestlé have taken active measures to reduce their CO2 emissions. Holcim has developed a comprehensive sustainability strategy that aims to be CO2 neutral along the entire value chain by 2050. Among other things, the company has joined the Science Based Targets Initiative (SBTi). The SBTi supports companies in setting and implementing science-based targets to reduce their greenhouse gas emissions. Nestlé also has the goal of achieving CO2 neutrality by 2050 and halving its CO2 emissions by 2030. For this reason, Nestlé has also joined the SBTi.

It is clear that the ambitious emission reduction targets of these companies have helped to significantly reduce the SPI's CO2 figures and that they will continue to contribute to a further improvement in the sustainability profile of the Swiss stock market in the future.

¹ MSCI adjusts the CO2 data for the individual securities once a year. All data is from MSCI and takes into account Scope 1 + Scope