STOXX Ltd., the operator of Deutsche Boerse Group’s index business and a global provider of innovative and tradable index concepts, has launched a series of new benchmark ESG-X indices, such as an ESG-X version of the flagship EURO STOXX 50® Index.
The ESG-X index concept was developed based on input from asset owners and includes a product involvement screening for controversial weapons, tobacco and thermal coal as well as a norm-based screening that follows the United Nations Global Compact principles of human and labor rights, the environment, business ethics and anti-corruption. STOXX cooperates with the ESG data provider Sustainalytics for the screening.
“In order to meet ESG investment criteria, asset owners need to look for solutions beyond the traditional market-cap-weighted index, and still create portfolios that do not diverge from standard benchmarks or incur additional costs. STOXX already addressed this issue in November with the STOXX Europe 600 ESG-X Index and has now launched a set of further benchmarks that exclude companies based on norm- and product-based screenings,” said Inderpal Gujral, STOXX’s Head of Product.
“We were involved in the development of STOXX Europe 600 ESG-X as we were looking for a tradable European benchmark index that is compliant with our responsible investment policy,” said Magnus Linder, Head of Derivatives at Swedbank Robur. “We are very happy that the ESG-X range is extended with Eurozone, US and global benchmark indices.”
The new offering further includes global and emerging markets benchmarks, such as ESG-X versions of the STOXX Global 3000, STOXX Global 1800 and STOXX Emerging Markets 800. The STOXX USA 500 ESG-X was launched due to high client demand to apply a standardized European exclusion strategy to the US index.
In February, Eurex launched ESG futures on the STOXX Europe 600 ESG-X, which offers a cost-effective way to gain European ESG exposure. https://www.stoxx.com/esgderivatives
