Euronext has launched the new AEX ESG Index, which identifies the 25 companies that demonstrate the best environmental, social and governance (ESG) practices from the 50 constituents of the Amsterdam Stock and MidCap exchanges.
The move follows the introduction of the French CAC 40 ESG Index, the Italian MIBESG Index and the Norwegian OBX ESG Index.
Euronext said it is responding to the growing demand for sustainable investment tools from investors and the wider market.
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, which is part of Morningstar and is a global provider of ESG research, ratings, and data.
It also incorporates negative screening and norm-based exclusion filters applied in accordance with the UN Global Compact Principles.
In addition, its methodology will evolve to integrate new European Union regulations and standards as they emerge.
Euronext said the composition of the index is revised quarterly under supervision of the independent scientific committee of the AEX family.
It added that the index methodology is developed in line with the principles of the CAC40 ESG, MIB ESG and OBX ESG indices.
Euronext will offer price return, net return and gross return versions of the index.
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