Leading derivatives marketplace CME Group announced that it will launch E-mini S&P Europe 350 ESG Index futures, further expanding the universe of tools and strategies available to sustainability-focused investors.
According to CME Group, the launch comes as demand for sustainable investments continues to grow, with the new product providing an efficient new way for investors to capture benchmark European equity exposure and integrate ESG exposure into their investments.
Tim McCourt, CME Group Global Head of Equity Index and Alternative Investment Products, said:
“Interest in ESG strategies continues to increase as financial institutions incorporate sustainable investing objectives into their trading strategies. Futures products can be an important part of the solution. This latest addition to our ESG offerings will allow market participants in this region to gain exposure to a European index based on a robust ESG methodology – all to meet their risk management needs.”
The S&P Europe 350 ESG Index is a pan-European index covering developed markets across over 15 different countries. The index is constructed from the constituents of the S&P Europe 350 index, with inclusion based on criteria including S&P DJI ESG Scores, derived from an annual Corporate Sustainability Assessment (CSA), and screens and exclusions for involvement in certain business activities, such as controversial weapons or thermal coal extraction, or for companies not aligned with the principles of the UN’s Global Compact (UNGC).
Reid Steadman, Global Head of ESG at S&P Dow Jones Indices, said:
“S&P Dow Jones Indices is proud to be a part of the CME Group’s launch of E-Mini futures based on our S&P Europe 350 ESG Index. We are excited that the ecosystem of financial products linked to our ESG indices is growing and diversifying as more investors incorporate sustainability targets in their strategies. CME Group’s E-mini S&P Europe 350 ESG Index Futures complements the successful launch in the U.S. in 2019 of E-Mini futures tied to our S&P 500 ESG Index, enabling us to bring ESG principles to a broader group of global market participants.”
CME expects to launch the E-mini S&P Europe 350 ESG futures on May 24, 2021.