German gov't pension funds adopt new Euronext index to reach climate goals

On the 07/12/21 at 10:31AM


Adrien Paredes-Vanheule

Germany is progressively implementing its sustainable finance strategy unveiled early May.

Pan-European exchange operator Euronext on Monday unveiled the Euronext V.E ESG World 75 Index. This climate transition benchmark (CTB) index, focused on global equities, will be replicated by four German federal government's special pension and care funds which manage around €9bn in assets. Euronext's new ESG index is managed by V.E., part of Moody’s ESG Solutions, and imug | rating and tracks 75 companies in six countries located outside the eurozone. 

The adoption of the Euronext V.E. ESG World 75 index will help the concerned funds in aligning Germany's sustainable finance strategy with climate transition targets set by the European Union. The German authorities had chosen previously S&P Dow Jones Indices to develop an innovative environmental, social and governance (ESG) index - the S&P ESG Eurozone 60 Bund-SV Index - to serve as a performance benchmark for four of the government’s federal special pension funds. It had specified in its sustainable finance strategy whitepaper that it was looking for two indices.

Commenting on the index launch, Stéphane Boujnah, chief executive officer and chairman of Euronext, said: “The launch of the Euronext V.E ESG World 75 index today is an important step to accelerate the transition to a sustainable economy in Europe. As a leading index provider in Europe, we are delighted to contribute, together with all the participants in this project, to Germany’s first-ever national sustainable finance strategy. This mandate granted by the German Government demonstrates the Euronext position as an international leading player to accelerate the ESG transition.”

Andrea Blackman, global head of Moody's ESG Solutions, noted that​ “public pension and care funds are increasingly seeking ESG information as a key input for strategic planning, investment decisions, and risk analysis.”

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