The new contract, based on the ESG version of the French national benchmark index, provides institutional investors with an additional tool to contribute to the accelerating development of sustainable investment.
Supported by BNP Paribas and Société Générale as market makers, firms that are strongly committed to the transition towards sustainable finance, the contract will enable market participants to manage and hedge ESG portfolios efficiently and in compliance with ESG principles, and to lower the cost of trading through the use of a futures contract.
The new contract will facilitate the ongoing reallocation of assets from the CAC 40® index to its ESG version. Launched in March 2021, the CAC 40 ESG index gained immediate traction, as it represents a highly liquid solution for asset owners looking for cost-effective ways to integrate sustainable factors at the core of their investments. One year later, a quarter of the assets under management of the CAC 40 index have been transferred to the CAC 40 ESG index.
The CAC 40 ESG index methodology, powered by Moody’s ESG Solutions data, combines Environmental, Social and Governance considerations with the French SRI label and the UN Global Compact principles, and excludes companies involved in coal, controversial weapons and tobacco activities.
Stéphane Boujnah, CEO and Chairman of the Managing Board of Euronext, said: “After the strong success of the ESG version of the CAC 40 index, we are proud to provide investors today with a powerful tool to reallocate their investment flows towards sustainable finance, since they play a key role in making this transition of flows a reality. As the CAC 40 index future is the most traded index future on Euronext, we are opening a new avenue in the development of responsible finance by launching the ESG version of this blue-chip index futures contract”.
Alexandre Benech, Global Head of flow trading at BNP Paribas Global Markets: “BNP Paribas supports the growth of ESG benchmarks as an important driver to increased transparency in this market, and as such will be a liquidity provider on the new CAC 40 ESG index future. BNP Paribas also provides liquidity on existing CAC ESG ETFs onto exchanges and for our clients”.
Euronext is a leading ESG index provider, with ESG indices making up over 80% of all its indices. Since the pioneering launch of the CAC 40 ESG index, Euronext has successfully launched further ESG versions of national benchmark indices: the MIB® ESG index in Milan, the OBX® ESG index in Oslo and the AEX® ESG index in Amsterdam.
