Eurex is to launch futures and options contracts on the EURO STOXX 50 ESG and DAX 50 ESG Indices.
Eurex says that companies in the DAX 50 ESG Index must pass standardized ESG screens related to Sustanalytics’ Global Standards Screening as well as not be involved in controversial weapons, tobacco production, thermal coal, nuclear power or military contracting. The base universe of the DAX 50 ESG Index is the HDAX universe which comprises the joint set of companies included in the DAX, MDAX and TecDAX.
The EURO STOXX 50 ESG Index is based on Europe’s flagship benchmark, the EURO STOXX 50 Index. The ESG version excludes companies that Sustainalytics considers to be non-compliant with Global Standards Screening. In addition to the exclusion screens, the ten per cent of companies with the lowest ESG scores are excluded and replaced by companies with a higher ESG score from the same ICB (Industry Classification Benchmark) Supersector.