ESG Indices

Euronext ESG indices: supporting sustainable investment strategies

Environmental, social and governance (ESG) factors are increasingly shaping investment decisions as investors seek to align their portfolios with sustainability objectives and responsible business practices. Euronext ESG indices have been developed to meet this demand, offering transparent, rules-based benchmarks that track the performance of companies with strong ESG credentials. These indices are essential tools for investors, asset managers and product providers who want to incorporate ESG factors into their investment strategies.

What are Euronext ESG indices?

Euronext ESG indices measure the performance of companies that meet specific ESG criteria, using rigorous selection methodologies and data from reputable providers. The indices cover a broad range of markets and sectors, including pan-European and national benchmarks, as well as thematic indices focused on climate action, low carbon, gender diversity and other sustainability themes. Euronext applies clear eligibility rules and regular reviews to ensure its ESG indices remain relevant and representative of the evolving sustainability landscape.

Each Euronext ESG index is constructed using transparent criteria that reflect best practices in ESG assessment. Companies are screened for compliance with international standards such as the United Nations Global Compact, and are evaluated on factors including carbon emissions, energy efficiency, board diversity, human rights policies and supply chain management. This approach results in a family of indices that provide investors with reliable benchmarks for tracking the performance of sustainable companies and sectors.

 

Use cases for Euronext ESG indices

Euronext ESG indices play a vital role in the investment ecosystem, supporting a wide range of use cases for institutional and retail investors. 

Benchmarking

One primary use is ESG benchmarking, where investors and asset managers measure the performance of their portfolios against a recognised ESG standard. By comparing returns and risk characteristics to a relevant ESG index, investors can assess the effectiveness of their sustainability strategies and identify areas for improvement.

Investing in index-based products

Another key use case is investing in index-based products, such as exchange-traded funds (ETFs), mutual funds and structured products. These vehicles enable investors to gain diversified exposure to companies with strong ESG profiles, often at lower cost and with greater transparency than traditional active management. Euronext ESG indices serve as the underlying benchmarks for a growing range of sustainable investment products, making it easier for investors to implement ESG strategies and meet regulatory or client-driven requirements.

Market research and analysis

Euronext ESG indices are also used for market research and analysis, helping investors understand market trends, identify emerging leaders in sustainability and monitor the impact of ESG factors on financial performance. The indices provide a valuable reference point for engagement with companies, proxy voting and stewardship activities, supporting the broader goal of promoting responsible business practices across the market.

Transparency and methodology of Euronext ESG indices

A key strength of Euronext ESG indices is their commitment to transparency and robust methodology. Each index is governed by clear rules that are publicly available, with regular reviews to ensure ongoing relevance and accuracy. Euronext works with leading ESG data providers to source reliable information and applies exclusion criteria to screen out companies involved in controversial activities or failing to meet minimum standards. The index methodologies are designed to be replicable and investable, supporting the creation of index-tracking products and strategies.

Investors can access detailed information about each Euronext ESG index, including constituent lists, weightings, performance data and methodology documents, via the Euronext ESG index directory. This resource, available at https://live.euronext.com/en/products/indices/esg-indices, provides a comprehensive overview of the available indices and supports informed decision-making for investors and product providers.

Benefits of Euronext ESG indices for investors

Euronext ESG indices offer a range of benefits for investors seeking to integrate sustainability into their portfolios. By providing clear, objective benchmarks, the indices help investors measure and manage ESG risks, align with regulatory requirements and respond to growing client demand for responsible investment solutions. The indices also support diversification, enabling exposure to a broad range of companies and sectors that meet high ESG standards.

For those investing in index-based products, Euronext ESG indices offer the reassurance of a transparent, rules-based approach, with regular updates to reflect changes in company performance and market dynamics. This helps to ensure that investment products remain aligned with evolving sustainability goals and best practices.

Driving sustainable finance in Europe with Euronext ESG indices

Euronext is committed to supporting the growth of sustainable finance across Europe, and its ESG indices are a key part of this mission. By providing investors with reliable tools for ESG benchmarking, product development and market analysis, Euronext helps to channel capital towards companies that are leading the way in environmental stewardship, social responsibility and good governance. The indices also support engagement and dialogue between investors and issuers, promoting continuous improvement and innovation in ESG practices.

 

Explore the Euronext ESG index directory

Investors interested in learning more about Euronext ESG indices can explore the full range of available benchmarks via the Euronext ESG index directory. This online resource provides up-to-date information on index composition, performance and methodology, supporting the needs of asset managers, product providers and individual investors. By leveraging Euronext ESG indices, investors can take meaningful steps towards building more sustainable, responsible portfolios and contributing to the transition to a greener economy.

Euronext ESG index direc…