When looking to carbon footprint major indices under the SFDR, we noticed that
Enterprise Value Including Cash (EVIC) is expected as the denominator. Typically,
Enterprise Value's main components are

Question

When looking to carbon footprint major indices under the SFDR, we noticed that
Enterprise Value Including Cash (EVIC) is expected as the denominator. Typically,
Enterprise Value's main components are debt and cash which are not used by financial
undertakings (e.g. banks) in the same way they are for non-financial undertakings. Banks
are normally evaluated from loans and deposits. We do not believe there is an alternative

EV value for banks. Is the expectation for EVIC that the FMP self-derives "current market
cap + book value of debt + minority interests" instead of EVIC for financial undertakings?
Or that you exclude financial undertakings in the calculation altogether?

ESA Joint Committee (EBA, ESMA, EIOPA) · Accepted Answer

It does seem that
in the case of financial undertakings, using gross debt rather than net debt creates
peculiar results.
The ESAs recognise that the Enterprise Value definition in point 4 of Annex I of the Delegated
Regulation was not specifically designed for credit institutions, but that definition is still meaningful
and should be used as it provides an appropriate allocation mechanism to allow calculations to be
made. Financial market participants should not develop their own definitions for the terms used in
that definition.

When looking to carbon footprint major indices under the SFDR, we noticed that Enterprise Value Including Cash (EVIC) is expected as the denominator. Typically, Enterprise Value's main components are

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