Euronext has launched the BEL ESG index, which is able to identify and track companies in the BEL 20 and BEL Mid indices that meet specific free-float market cap and velocity criteria.
The index is designed to encourage investor adoption of ESG investment solutions. Data is provided by Sustainalytics, with an ESG assessment provided for each company on the list. These assessments align with the Central Labelling Agency’s ‘Towards Sustainability’ label, a recognised and respected standard.
Companies are filtered out first by any breach of Global Standards Principles or association with controversial activity, both of which are available from Sustainalytics. The latter’s Sustainability Subindustry ESG Risk Rating ranking system is also taken into consideration.
The accumulated data is then used to rank the companies, the top 20 of which are free-float capitalisation weighted in the BEL ESG index. This list will be renewed each quarter.
The launch marks the fourth ESG index variant for national blue chip indices, preceded by France’s CAC 40 ESG, Italy’s MIB ESG, the Netherlands’ AEX ESG and Norway’s OBX ESG.
Stéphane Boujnah, CEO and chairman of Euronext N.V. marketing board, says: “By combining the recognised BEL brand with a stringent and consensual ESG methodology while maintaining liquidity, the BEL ESG responds to the market’s growing demand for sustainable investment tools. As a leading index provider in Europe, we are determined to accelerate the transition to sustainable investments through the launch of indices such as this.”
Ita Demyttenaere, director of client relations at Sustainalytics, comments: “The BEL ESG index is a significant milestone for the Belgian market, thanks to its compliance with the Central Labelling Agency’s ‘Towards Sustainability’ label. Morningstar Sustainalytics’ ESG data and robust methodology advance the index’s credibility by considering the ESG risk exposure management of the largest companies based on market capitalisation.”
