Euronext launches CAC 40 Governance Index with Vigeo Eiris

Paris – 24 March 2017 – Euronext and Vigeo Eiris today launched the CAC 40® Governance Index, a thematic index that rates companies in the Paris market’s benchmark CAC 40 index on their corporate governance performance.

The CAC 40® Governance Index takes the constituent stocks of the CAC 40 index and weights the components based on their corporate governance score, using Equitics® methodology developed by Vigeo Eiris. Equitics® is based on 45 indicators that address the following four criteria:

  • Responsible board practice and organisation: effectiveness, balance of power, integration of social responsibility factors
  • Audit and internal controls: independence of specialised committees and review of CSR risks
  • Shareholders’ rights: fair treatment and protection of minorities
  • Responsible executive remuneration.

CAC 40® component stocks are classified in four groups of ten, based on their scores, and assigned a corresponding weight in the index (see complete list in Appendix 2 below):

  • the ten top-rated companies are assigned a total weight of 40%
  • the next ten are assigned a weight of 30%
  • the ten following companies are assigned a weight of 20%
  • the final ten are assigned a weight of 10%.

The index is calculated and disseminated like the CAC 40, except that stocks’ weighting is based not on market capitalisation but on their corporate governance performance score. This score is assigned using a questionnaire that rates the integration of social responsibility and sustainability in their processes for decision-making, control and management assessment. Index composition and weighting are reviewed quarterly, like the CAC 40 Index.

The top ten companies in the index are as follows (in alphabetical order):

ISIN code

Company name

FR0000051732

ATOS

FR0000120628

AXA

FR0000131104

BNP PARIBAS

FR0000120644

DANONE

FR0010208488

ENGIE

FR0010307819

LEGRAND

FR0000130809

SOCIETE GENERALE

FR0000120271

TOTAL

FR0000124711

UNIBAIL RODAMCO

FR0000125486

VINCI

 

The index shows that CAC 40 companies demonstrate robust performances in responsible corporate governance. Environment, Social and Governance (ESG) factors are well integrated, particularly in terms of respect for shareholders’ rights and audit and internal controls. The main area of vulnerability and axis for improvement is responsible executive remuneration, in particular the independence of remuneration committees, transparency on remuneration levels, and integration of objectives for mitigating CSR-related risks based on performance and progress indicators in short and long-term incentive plans. 

Fouad BenseddikDirector of Methods and Institutional Relations at Vigeo Eiris, said: “We are delighted to be continuing our longstanding partnership with Euronext with this new thematic index. And we are convinced that this new index, which responds to strong market demand, will lead to even better recognition of the companies that rely on the most responsible governance systems.”

“In socially responsible investment, extra-financial rating is considered a good indicator of company solidity and CSR performance. We teamed up with Vigeo Eiris to design the first corporate governance index based on the CAC 40, to demonstrate that aligning company interests with those of its stakeholders can create long-term value,” added Anthony Attia, CEO of Euronext Paris and Global Head of Listing.

More details on index rules are available on the Euronext and Vigeo Eiris websites.

Appendices

About Vigeo Eiris
Vigeo Eiris is a global provider of environmental, social and governance (ESG) research to investors and public and private corporates. The agency evaluates the level of integration of sustainability factors into organisations’ strategies and operations, and undertakes risk assessments to assist investor and corporate decision-making.
Vigeo Eiris offers two types of services through separate business units:

  • Vigeo Eiris rating offers databases, sector-based analyses, ratings, benchmarks and portfolio screening, to serve all ethical and responsible investment strategies.
  • Vigeo Eiris enterprise works with organisations of all sizes, from all sectors, public and private, in order to support them in the integration of ESG criteria into their business functions and strategic operations.

Vigeo Eiris methodologies and rating services adhere to the strictest quality standards and have been certified to the independent ARISTA® standard. Vigeo Eiris is a CBI (Climate Bond Initiative) Verifier. Vigeo Eiris’ research is referenced in several international scientific publications.
Vigeo Eiris is present in Paris, London, Boston, Brussels, Casablanca, Milan, Montreal, Santiago and Tokyo and has a team of 200. The agency works with partners through its Vigeo Eiris Global Network.
‎For more information: www.vigeo-eiris.com

About Euronext
Euronext is the leading pan-European exchange in the Eurozone with nearly 1,300 listed issuers worth close to €3.5 trillion in market capitalisation as of end March 2017, an unmatched blue chip franchise consisting of 25 issuers in the EURO STOXX 50® benchmark and a strong diverse domestic and international client base.
Euronext operates regulated and transparent equity and derivatives markets. Its total product offering includes Equities, Exchange Traded Funds, Warrants & Certificates, Bonds, Derivatives, Commodities and Indices. Euronext also leverages its expertise in running markets by providing technology and managed services to third parties. In addition to its main regulated market, Euronext also operates Euronext Growth™ (formerly known as Alternext) and Euronext Access™ (formerly known as the Free Market). 

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