Euronext announces that it will launch a new ESG Index, the OBX® ESG Index.
This index will identify the companies that demonstrate the best Environmental, Social and Governance (ESG) practices. The launch of this sustainable index follows the successful launch of the French CAC 40 ESG® Index, the Italian MIB® ESG Index and the announcement of the Dutch AEX® ESG launch.
In launching this new suite of ESG indices, Euronext is responding to the growing demand for sustainable investment tools from investors and the wider market. The OBX® ESG family will be launched and available to index users in May, and offer variants to comply with the needs of index users.
The OBX® ESG Index combines measurement of economic performance with Environmental, Social and Governance impacts in line with the UN Global Compact principles1.
For the ESG data, Euronext has partnered with Sustainalytics, a Morningstar Company and a leading global provider of ESG research, ratings and data. They will provide the ESG assessment of companies for the composition of the index.
The OBX® ESG index is designed to facilitate the ESG investment approaches by institutional and private investors:
- It reflects a relative ranking for the “Best-in-Class” companies based on ESG Risk Rating criteria assessed by Sustainalytics.
- It incorporates negative screening and norm-based exclusion filters applied in accordance with the UN Global Compact Principles.
- Its methodology will evolve to integrate new regulations and standards as they emerge.
- The composition and methodology of the index will be revised semi-annually under supervision of the independent committee for the OBX® Family.
- The index methodology is developed in line with the principles of the CAC40® ESG, MIB® ESG and AEX® ESG indices.
“The launch of ESG OBX® index, further expands Euronext and Oslo Børs in the Nordic Region, leveraging on our expertise as ESG index provider. The index is constructed to meet the demands for investable ESG alternatives in the Norwegian market and it consolidates it as the Nordic champion in financing the green transition of companies and a leading listing venue for cleStéphane Boujnah, CEO and Chairman of the Managing Board of Euronext N.V.antech.”
“We are excited to see how our growing partnership with Euronext will strengthen the integration of the ESG issues that matter most to Nordic market participants. Sustainalytics’ comprehensive ESG Risk Ratings and data that underpin the new OBX ESG Index will enable more investors to better respond to the increasing demand for transparency within the evolving EU Action Plan regulations. We look forward to the upcoming launch as part of the Euronext suite of ESG indexes supporting European investors.”Axel Pierron, director of Client Relations at Sustainalytics