Pan-European exchange Euronext announced today the launch of a broad suite of ESG-themes products services and initiatives, aimed at providing a robust toolset for European capital markets to promote sustainable growth, as well as expanding its own ESG commitments.
Today’s announcements include the following products and initiatives:
- Euronext ESG 80 index: Euronext is partnering with Vigeo Eiris Moody’s to launch the Euronext Eurozone ESG Large 80, an index tracking 80 Large Cap companies selected for their ESG and Energy Transition performance. Additionally, Euronext launched ESG 80 futures, its first futures derivatives contracts based on an ESG index, providing effective hedging tools and enabling investors to gain exposure to the sustainable economy in the Eurozone. The ESG 80 futures are supported by market makers BNP Paribas, DRW, Optiver and Société Générale.
- Low Carbon 100 Alignment with Paris Agreement: The Low Carbon Index was launched in 2008, to measure the performance of 100 large cap European companies with the lowest carbon (CO2) emissions in their respective sectors or sub-sectors. The index is available to investors through an ETF provided by BNP Paribas. Today, Euronext, along with partners CDP, Carbone 4 and Vigeo Eiris Moody’s, announced that the index is now aligned with the current draft of EU regulation on low carbon benchmarks, conforming with the Paris Agreement objectives. Paris Agreement requirements include 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.
- Broader set of ESG Bonds. In addition to the blue, social, sustainability and sustainability-linked bonds. offering launched last year, Euronext is now introducing a broader set of ESG-related bonds. The new offerings will include blue, social, sustainability and sustainability-linked bonds. Euronext reported that since launching in November, Euronext Green Bonds have seen nearly 70% growth in the number of issuers.
- ESG Services for Listed Companies. Through the Euronext Corporate Services offering, the Euronext offers listed companies a suite of tailor-made ESG Advisory services, enabling them to clarify their ESG strategies, as well as aiding with ESG reporting and improved governance. Earlier this year, Euronext issued a set of ESG guidelines on reporting for issuers, based on recommendations from the UN Sustainable Stock Exchanges Initiative (SSE), designed to help listed companies structure their approach to ESG.
- Committment to a new SDG: Life Below Water. Euronext announced that it has added a new Sustainable Development Goal (SDG) to the seven already outlined in its ESG roadmap. Committing to “Goal 14: Life Below Water,” Euronext has become the first exchange to sign on to the nine ocean principles of UN Global Compact.
Commenting on today’s announcements, 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. 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.”