Index and analytics provider Qontigo announced today that it has licensed the DAX 50 ESG index to Austria’s Raiffeisen Centrobank to be used as an underlying for a certificate. Certificates are investment securities that are tied to an underlying instrument, such as an index or a stock. This will be the first time the index has been utilized for a certificate, creating exposure for investors looking to invest in an ESG-themed German large-cap index.
Philipp Arnold, Head of Structured Products Sales at Raiffeisen Centrobank, said:
“Sustainability is firmly established in the minds of investors, who believe in the potential of ESG-compliant companies. The DAX 50 ESG index sends a positive signal that sustainability and investment returns go hand-in-hand. Our certificates universe will become even more appealing now to investors looking for a German market ESG index.”
The DAX 50 ESG tracks the performance of the 50 largest, most liquid German market stocks that have comparably good performance based on their ESG criteria. The index utilizes two complementary approaches to incorporate ESG principles into the selection criteria, including negative screens for companies that are involved in controversial or unsustainable activities, and positive screens based on ESG scores.
Stephan Flagel, Global Head of Indices & Benchmarks at Qontigo, said:
“We are delighted to license the DAX 50 ESG Index to Raiffeisen Centrobank. It will be the first time this index is used as an underlying for a certificate. The index was introduced in March as a new standard for the growing pool of investors integrating environmental, social and governance principles into their investment approach and looking for a liquid German equity benchmark.”