Euronext and Vigeo Launch Newly Forged ESG ‘Smart’ Index

Euronext and Vigeo have teamed up to pioneer an ESG index pegged to companies' performance from emerging market economies.

Euronext, Europe’s largest exchange, has teamed up with Vigeo to launch a new environment, social issues and governance (ESG) Index, tapped the Euronext-Vigeo EM 70, according to a Euronext statement.

Vigeo is a paramount European agency in Corporate Social Responsibility ratings. Along with Euronext, the newly forged index will feature a total of 70 leading companies from an overall pool of 900 listed companies from developing countries – the caveat is the inclusion onto the index via standout performances in corporate responsibility, as based on their respective ratings calculated by Vigeo.

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Conversely, companies’ weighting in the index will be calculated by Euronext and correlated with the score assigned by Vigeo. This strategy represents an alternative, yet viable approach to traditional methods based on float, allowing for positive discrimination.

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Furthermore, the new index components are reviewed and updated a total of twice a year in six-month intervals, in June and December. Overall, the range of Euronext-Vigeo indices is composed of the following 8 indices:

  • Euronext-Vigeo EM 70, (70 most advanced companies in emerging countries)
  • Euronext-Vigeo France 20, (20 most advanced French companies)
  • Euronext-Vigeo UK 20, (20 most advanced British companies)
  • Euronext-Vigeo Benelux 20, (20 most advanced Benelux companies)
  • Euronext-Vigeo US 50, (50 most advanced American companies)
  • Euronext-Vigeo Eurozone 120, (120 most advanced companies in the Eurozone)
  • Euronext-Vigeo Europe 120, (120 most advanced European countries)
  • Euronext-Vigeo World 120, (120 most advanced companies globally)

On the heels of a decision taken by Vigeo’s methodology team, companies subject to controversy on critical issues, ranging from social responsibility to environmental issues abstain from supplying necessary public information on corrective measures, are excluded.

Last week, Euronext Paris finished its move to a new location, placing it in a more strategic locale in the heart of the French capital. The new address is 14, place des Reflets, 92054 Paris La Défense Cedex in the Praetorium building, placing the office in proximity to some of Europe’s leading businesses operating in Paris.

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