NYSE Euronext And Vigeo Expand Range Of ESG Indices
NYSE Euronext (NYX), the world’s largest exchange group, and Vigeo, the leading European expert in responsible performance, are expanding their range of ESG1 indices with the launch of the Euronext Vigeo Benelux 20, the Euronext Vigeo Eurozone 120 and the Euronext Vigeo US 50.
Components of these three new indices include major listed companies in, respectively, the Netherlands, Belgium and Luxembourg; the euro zone; and North America. Index components are based on Vigeo assessments and will be updated twice a year, in May and in November.
As with the Euronext Vigeo World 120, Euronext Vigeo Europe 120, Euronext Vigeo France 20 and Euronext Vigeo UK 20, all launched in March 2013, the component stocks of these three new indices are the companies rated highest for control of corporate responsibility risk and contributions to sustainable development. Performance is measured by the Equitics® method pioneered by Vigeo. Ratings are based on 38 criteria including respect for the environment; human rights and recognition of companies’ humancapital; relations with stakeholders (clients, suppliers, employees, shareholders, etc.); corporate governance and business ethics; integrity in influencing policy and efforts to fight corruption; and the prevention of social and environmental dumping in the supply and subcontracting chain. Vigeo draws on its existing database to analyse nearly 330 indicators for each company.
“The Euronext Vigeo index family gives investors a chance to invest in companies that meet internationally recognized standards for corporate social responsibility. Our indices are designed to identify and measure the performance of companies committed to the long-term protection of our environment, to developing constructive relations with all stakeholders, and to promoting respect for human rights,” said Fabrice Rahmouni, Index Designer at NYSE Euronext.
“Vigeo has chosen to build its benchmarks around universally recognized standards drawn from UN and ILO conventions and treaties of the, and from OECD guidelines. This approach has strengthened the international reputation of Euronext Vigeo indices,” he added.
Fouad Benseddik, Director of Methodology at Vigeo, added: “These three new indices—covering the Benelux, the euro zone and North America—are a useful addition to the instruments we offer the most demanding investors tracking social responsibility risk, shareholder dialogue, and a commitment to companies promoting sustainable development.”
1 ESG: the environment, social issues and corporate governance – the three pillars of socially responsible investment (SRI).
1 Vigeo excludes no business sectors and applies no filters based on the activities or products of companies under review, except in cases where such products or activities are prohibited by law or by international treaties.
2 See appendix for a list of Euronext Vigeo index component stocks.