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Euronext announces a new suite of ESG-focused products



Euronext, the pan-European exchange in the Eurozone, announced the launch of a new suite of ESG products, services and initiatives, designed to empower sustainable growth. The launch is a important step in Euronext’s three-year strategic plan, “Let’s Grow Together 2022”.

Euronext has teamed up with Vigeo Eiris Moody’s in the design of the Euronext Eurozone ESG Large 80 index, which tracks the Eurozone’s 80 best-performing Large Cap companies with strong performance on social and governance criteria and leading the transition to a low carbon economy. This new ESG index responds to investors’ need for a public climate action benchmark in the Eurozone.

The new ESG 80 futures, introduced on 1 June 2020, provide effective hedging tools and allow more investors to gain exposure to the sustainable economy in the Eurozone. It had the support of BNP Paribas, DRW, Optiver and Société Générale at its launch.

Together with its partners CDP, Carbone 4 and Vigeo Eiris Moody’s, Euronext announces that Europe’s oldest and most successful low carbon index, the Low Carbon 100, is aligned with the current EU regulation on low carbon benchmarks coordinated with the Paris Agreement objectives.

BNP Paribas provides exchange traded funds through which the index gives investors a ready-to-use tool to support the environmental objectives of the Paris Agreement, which are a 7% YoY reduction of CO2 emissions, a limit of 1.5°C global temperature rises by 2050 and exclusion of fossil fuel companies.

Clients can find on Euronext a comprehensive range of over 40 ESG index families.

Euronext Green Bonds offering introduced last November was very successful with close to 70% growth issuers since launch. Euronext is expanding this offering to other ESG-related bonds, such as blue, social, sustainability and sustainability-linked bonds. Currently, 231 ESG bonds from 95 issuers are featured on the new Euronext ESG Bonds section.

Euronext has over €165bn of ESG bond issuances listed on its markets. Last year, 54.3bn of green bonds were listed on Euronext.

 

Euronext announces a new suite of ESG-focused products

Euronext is prepared for investors taking ESG criteria into consideration in their investment strategies and has developed a suite of innovative solutions for listed companies through its Corporate Services offering.  The ESG Advisory services are tailor-made and allow issuers to reach new investors by clarifying their ESG strategy for capital markets and building their ESG profile with relevant reporting and improved administration. The suite also offers additional services including digital tools for virtual roadshows and remote control, contributing to enhancing the investor relations and board management experience and reduction of the environmental impact from business travel.

The European exchange introduced a set of guidelines on ESG reporting for issuers in the beginning of the year. The instructions draw on UN Sustainable Stock Exchanges Initiative recommendations and are designed to help listed companies structure their approach to ESG. Through FESE[1], Euronext has initiated a collective European task force to agree on common ESG measurement and reporting standards across all European exchanges.

Stéphane Boujnah, Euronext CEO and Chairman of the Managing Board, commented:

Stéphane Boujnah
Stephane Boujnah, Euronext

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.


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