Article 7 Setting a decarbonisation trajectory

The decarbonisation trajectory for F1UK Climate Transition Benchmarks and F2UK Paris-aligned Benchmarks shall have the following targets:

The targets referred to in paragraph 1 shall be calculated geometrically, which shall mean that the annual minimum 7 % reduction of GHG intensity or of absolute GHG emissions for year ‘n’ shall be calculated based on the GHG intensity or absolute GHG emissions for the year n-1, in a geometric progression from the base year.

Where the average EVIC of the constituent securities of the benchmark has increased or decreased during the last calendar year, the EVIC of each constituent shall be adjusted by dividing it by an enterprise value inflation adjustment factor. That enterprise value inflation adjustment factor shall be calculated by dividing the average EVIC of the benchmark constituents at the end of a calendar year by the average EVIC of the benchmark constituents at the end of the previous calendar year.

Administrators of UK Climate Transition Benchmarks and administrators of UK Paris-aligned Benchmarks shall, for each year in which the targets laid down in paragraph 1 are not achieved, compensate for those missed targets by upwardly adjusting the targets in their decarbonisation trajectory for the following year.

Administrators of UK Climate Transition Benchmarks and administrators of UK Paris-aligned Benchmarks shall no longer be able to label their benchmarks as such where:

Benchmark administrators may relabel a benchmark as F4a UK Climate Transition Benchmark or as F5a UK Paris-aligned Benchmark where that benchmark meets the decarbonisation trajectory target for two consecutive years following the loss of the label, unless that benchmark lost that label twice.