Euronext has licensed its CAC40 ESG index to Amundi Asset Management, Europe’s largest asset management company, to launch an exchange traded fund (ETF) to track the index.
The CAC40 ESG index, which was launched in March, is the exchange’s first national ESG index and is derived from the CAC 40 index family.
It is designed to facilitate the adoption of mainstream ESG investment approaches by institutional and private investors by identifying the 40 companies within the CAC Large 60 Index that demonstrate the best environmental, social and governance (ESG) practices.
The index combines measurement of economic performance with ESG impacts, in line with the French SRI label and the UN Global Compact principles which lays out companies’ fundamental responsibilities in the areas of human rights, labour, environment and anti-corruption.
The index was developed following a large consultation among the financial community, public authorities and regulator.
Euronext struck a partnership with Vigeo Eiris (V.E), an affiliate of Moody’s, to provide the ESG assessment of companies for the composition of the index and engages in dialogue with them on their ESG performance.
Stephane Boujnah, CEO and Chairman of the Managing Board of Euronext N.V., said granting Amundi a license was “an important step to accelerate the transition to a sustainable economy, following the launch of the CAC 40 ESG.
He added, “As a leading index provider in Europe, we are delighted to contribute, together with all markets participants, to the construction of a sustainable financial ecosystem”.
Fannie Wurtz, Head of Distribution & Wealth Division & Head of ETF, Indexing & Smart Beta at Amundi said, “We strongly believe that ETFs and index management have a key role to play in the democratisation of the access to responsible investing and the support of a transition to a more sustainable world.
We are delighted to be able to provide investors with access to this index though an ETF in the coming weeks.”
©Markets Media Europe 2021