Eurex Launches ESG Futures
Eurex, one of the world’s largest derivatives exchanges, and STOXX, one of the world’s leading index providers, have teamed up to innovate the market for ESG (Environment, Social and Governance) investments. Based on three STOXX benchmarks, Eurex launches ESG Futures, thus supporting investors who apply ESG criteria.
Driving #ESGinvesting: we have teamed up with @STOXX to innovate the market for #ESG investments. Today, we have launched three ESG #Futures based on #STOXX benchmarks, thus supporting investors who focus on #sustainability. #ESGDerivatives https://t.co/szSp1RyyZf pic.twitter.com/BeBRLFTXLw
— Eurex (@EurexGroup) February 18, 2019
The three new futures on the highly liquid European STOXX benchmarks covering ESG Exclusions, Low Carbon and Climate Impact help market participants address the challenges and opportunities of ESG-driven asset management. “This allows asset owners to further manage unwanted sustainability risks, seek additional alpha and better meet their various investment mandates,” says Michael Peters, Head of Equity and Equity Index at Eurex.
“Swedbank Robur’s vision is to be a world leader in sustainable value creation. Therefore, ESG principles are naturally included in the way we work”, says Magnus Linder, responsible for derivatives trading at Swedbank Robur. “Swedbank Robur welcomes Eurex’s new ESG Family – we believe it will be a credible and cost-effective way for us to get a European ESG exposure.”
The ESG and sustainability derivatives are based on three STOXX indices: the EURO STOXX® 50 Low Carbon Index, the STOXX® Europe Climate Impact Ex Global Compact, Controversial Weapons & Tobacco Index and the recently launched STOXX® Europe 600 ESG-X Index. These three indices are part of the comprehensive ESG, Low Carbon and Sustainability offering of STOXX Ltd, the operator of Deutsche Börse Group’s index business and a global provider of innovative tradable index concepts.
“Climate change is not a short-term trend, but a long-term commitment by governments, the financial sector and investors globally. At STOXX, we provide both benchmarks and underlyings for exchange traded futures that offer an ESG norm, meeting the market’s needs,” says Inderpal Gujral, STOXX Head of Product.
Professional investors will want confirmation that their investments meet their ESG goals.
Amundi is a founding member and oversees about €280bn of assets with ESG criteria.
The Green Credit Continuum will develop three new segments in European green bonds.
The launch follows the introduction of Man Group’s responsible investment fund framework.
Climate change risk has not historically been incorporated into investment grade government debt.