Euronext has launched a new suite of environment, social and governance (ESG) focused products, services and initiatives, designed to provide a robust framework of tools for European capital markets to drive sustainable growth.
Euronext has partnered with Vigeo Eiris Moody’s to create a new ESG index, the Euronext Eurozone ESG Large 80, which tracks the eurozone’s 80 best-performing large cap companies that are strong on social and governance criteria and leading the transition to a low carbon economy. The new index is in response to investors’ need for a public climate action benchmark in the eurozone.
In addition, Euronext in conjunction with its partners CDP, Carbone 4 and Vigeo Eiris Moody’s, aligned the Low Carbon 100 index, created in 2008, with the current draft of EU regulation on low carbon benchmarks in accordance with the Paris Agreement objectives. This includes a 7% year-on-year reduction of CO2 emissions, a limit of 1.5°C global temperature rises by 2050 and exclusion of fossil fuel companies.
Earlier in June, Euronext, backed by four market makers – BNP Paribas, DRW, Optiver and Société Générale – introduced its first futures derivatives contracts based on an ESG index. The ESG 80 futures provide effective hedging tools and allow more investors to gain exposure to the sustainable economy in the eurozone.
Stéphane Boujnah, Euronext CEO and chairman of the managing board, said, “Today is an important milestone in executing the ESG roadmap of our three-year strategic plan ‘Let’s Grow Together 2022’. Euronext can significantly advance the European sustainability agenda through its unique role in financing the real economy, connecting local economies with global capital markets.”
He adds, “Our ESG product strategy ensures investors can deploy their capital efficiently and transparently to support high-impact projects and companies. Furthermore, we are proud to be the first stock exchange to endorse the UN Global Compact’s nine Ocean Principles. Protecting our oceans and supporting marine conservation will be vital to repairing our ecosystems and bolstering the Blue Economy.”
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