Euronext announced yesterday (12 May) the launch of the new AEX® ESG Index, which is now live and available to index users.
This index identifies the 25 companies that demonstrate the best Environmental, Social and Governance (ESG) practices from the 50 constituents of the AEX® and AMX® indices. The launch of this sustainable index follows the successful launch of the French CAC 40® ESG Index, the Italian MIB® ESG Index and the Norwegian OBX® ESG Index. 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. ESG assessment of companies is provided by Morningstar Sustainalytics, a leading global provider of ESG research, ratings, and data.
The AEX® ESG index is designed to facilitate the adoption of mainstream ESG investment approaches by institutional and private investors:
- It reflects a relative ranking for the 25 “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 1.
- Its methodology will evolve to integrate new EU regulations and standards as they emerge.
- The composition of the index is revised quarterly under supervision of the independent scientific committee of the AEX® family.
- The index methodology is developed in line with the principles of the CAC40® ESG, MIB® ESG and OBX® ESG indices.
The index selection is based on a starting universe of the 50 companies that make up of the AEX® and AMX® indices. From this universe, exclusions are caried out based on Sustainalytics data, and the 25 best scoring companies on ESG Risk rating are selected.
Euronext will offer price return, net return and gross return versions of the index.
The index will follow the same review schedule as the AEX® Family. The ext index review for the AEX® ESG will be in June 2022.
The full details on the composition and methodology for the AEX® ESG can be found at: https://live.euronext.com/product/indices/NLESG0000014-XAMS/market-information
AEX ESG Composition (NLESG0000014)