Euronext has launched a futures contract on the CAC 40 ESG index. The new contract, based on the ESG version of the French national benchmark index, provides institutional investors with an additional tool to contribute to the accelerating development of sustainable investment.
Supported by BNP Paribas and Société Générale as market makers, firms that are strongly committed to the transition towards sustainable finance, the contract will enable market participants to manage and hedge ESG portfolios efficiently and in compliance with ESG principles, and to lower the cost of trading through the use of a futures contract.
The new contract will facilitate the ongoing reallocation of assets from the CAC 40 index to its ESG version. Launched in March 2021, the CAC 40 ESG index gained immediate traction, as it represents a highly liquid solution for asset owners looking for cost-effective ways to integrate sustainable factors at the core of their investments. One year later, a quarter of the assets under management of the CAC 40 index have been transferred to the CAC 40 ESG index.