Euronext Launches an International Climate Transition Index

Shanny Basar
Euronext Launches an International Climate Transition Index

Euronext launches the Euronext V.E ESG World 751 Index, an International Climate Transition Benchmark (CTB) index, focused on worldwide equity investments, which will support the German Federal Government’s Special Pension and Care Funds in aligning its Sustainable Finance Strategy with the climate transition targets of the European Union (EU). Euronext’s innovative and global Environmental, Social and Governance (ESG) index will be replicated by four German Federal Government’s Special Pension and Care Funds, comprising of several billion euros in assets under management.

Powered by V.E, part of Moody’s ESG Solutions, and imug | rating, the Euronext V.E ESG World75 Index aims to manage worldwide equity investments through tracking 75 companies in six countries located outside the Eurozone. The final index selection covers a large investment capacity among the selected best stock ESG performances, as well as a robust geographical and sectorial representation, while implementing the EU CTB de-carbonisation objectives.

The selection of Euronext as an index provider by the German Federal Government re-affirms Euronext’s leading position in the European ESG index market. Euronext has a long track record of ESG indices, starting with the launch of its first index related to ESG, the Low carbon 100 Europe ®, in 2008. This year, Euronext made a step further with the launch of the CAC 40 ESG ®, a sustainable-oriented version of the French national benchmark index CAC 40 ®, to its broad index family.

Stéphane Boujnah, CEO and Chairman of Euronext, said: “The launch of the Euronext V.E ESG World 75 index today is an important step to accelerate the transition to a sustainable economy in Europe. As a leading index provider in Europe, we are delighted to contribute, together with all the participants in this project, to Germany’s first-ever national sustainable finance strategy. This mandate granted by the German Government demonstrates the Euronext position as an international leading player to accelerate the ESG transition.”

Andrea Blackman, Global Head of Moody’s ESG Solutions, commented​: “Public pension and care funds are increasingly seeking ESG information as a key input for strategic planning, investment decisions, and risk analysis. Our collaboration with Euronext and imug | rating further demonstrates our commitment to meeting market needs by powering indices with trusted ESG data and insights that help decision makers act with confidence.”

Axel Wilhelm, CEO of imug | rating, commented: “Today’s index launch marks an important milestone in the implementation of sustainable equity investments by the German government as a specialist for tailor-made sustainable investment solutions, we, at imug | rating, are honoured to support the German Federal Government on their ESG journey alongside Euronext and V.E, part of Moody’s ESG solutions.”

Source: Euronext

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