Pan-European exchange Euronext announced today the launch of the CAC 40 ESG index, aimed at identifying and tracking the performance of the 40 best-in-class ESG companies within the CAC Large 60 Index.
According to Euronext, the new index combines measurement of economic performance with ESG impacts, in line with the French SRI label, launched by the French Ministry of Finance in 2016 to help increase the visibility of socially responsible investment SRI products through the application of rigorous standards.
The index will also utilize negative screening filters in accordance with the UN Global Compact Principles, encompassing companies’ fundamental responsibilities in the areas of human rights, labour, environment and anti-corruption. Additional exclusions will be applied for companies involved in coal, controversial weapons and tobacco activities.
Stéphane Boujnah, CEO and Chairman of the Managing Board of Euronext N.V., said:
“The launch of the CAC 40 ESG index today is an important step to accelerate the transition to a sustainable economy. The ESG version of Euronext’s benchmark CAC 40 index will allow investors to finance high-impact projects and companies, in line with the UN Global Compact Principles and the SRI label for sustainable and responsible investment. As a leading index provider in Europe, we are delighted to contribute, together with all markets participants, to the construction of a sustainable financial ecosystem.”
Index composition will be powered by ESG assessments provided by V.E, an affiliate of Moody’s. (formerly Vigeo Eiris). The composition of the index will be revised quarterly in order to integrate companies whose ESG performance has improved sufficiently since the previous review, following the V.E ranking.
Sabine Lochmann, CEO & President of V.E and Global Head of Moody’s ESG Measures, said:
“Congratulations to Euronext on the launch of the CAC 40® ESG which will support the integration of ESG factors in investment processes. We are delighted to help power this index with our high-quality ESG data and are proud to be continuing to partner with Euronext, to catalyse the global shift to a sustainable and responsible financial system.”
Euronext stated that it expects to license the new index to financial services firms globally, with several ETF issuers such as Amundi, BNP Paribas AM and Lyxor already confirming interest.
Jean-Jacques Barbéris, Vice-President of Finance for Tomorrow (F4T), Executive Committee Member and Head of institutional and corporate clients division of Amundi, said:
“At Finance for Tomorrow, we are very excited about the launch of the CAC 40 ESG. We were glad to be part of fruitful exchanges that led to the creation of the CAC 40 ESG, which is in line with our mission to promote sustainable finance. Leveraging on the successful French SRI label, this index is a strong signal of the transition towards responsible investment.”