{"id":73908,"date":"2018-09-25T02:22:37","date_gmt":"2018-09-25T00:22:37","guid":{"rendered":"http:\/\/beta.next-finance.net\/innovation\/euronext-in-partnership-with-goldman-sachs-will-launch-a-green-index\/"},"modified":"2020-01-01T22:34:40","modified_gmt":"2020-01-01T21:34:40","slug":"euronext-in-partnership-with-goldman-sachs-will-launch-a-green-index","status":"publish","type":"post","link":"http:\/\/beta.next-finance.net\/en\/innovation\/euronext-in-partnership-with-goldman-sachs-will-launch-a-green-index\/","title":{"rendered":"Euronext in partnership with Goldman Sachs will launch a green index"},"content":{"rendered":"

Called Euronext CDP Environment France EW (FRENV)<\/em>, this index is composed of 40 components belonging to the 120 largest French stocks from the SBF 120.<\/p>\n

An index based on environmental scoring<\/strong><\/p>\n

Stock selection is based on company\u2019s performance regarding on the three main environmental challenges of climate change, water security and deforestation.<\/p>\n

To do this, the promoters of this new index rely on an environmental scoring – ranging from A to F – which represents the average of a company scores for each of these three environmental challenges.<\/p>\n

These scores are based on information disclosed through CDP, a UK-based, non-profit organization which aims to study the implications of climate change for the world’s principal publicly traded companies.<\/p>\n

Launched on the initiative of Goldman Sachs<\/strong><\/p>\n

\"Marine
Marine Abiad, Head of Distribution France at Goldman Sachs for Structured Products<\/figcaption><\/figure> The Euronext CDP Environment France EW<\/em> index will be exclusively licensed to Goldman Sachs, who will use the index as the underlying for structured products for sale in the interbank market in France.<\/p>\n

\u00ab This new index will allows for a diversification in the products offered to French retail investors because ESG themes are a central topic in our economy\u2019s current development and a subject of growing concern and interest from investors \u00bb<\/em>, said Marine Abiad, Head of Distribution France at Goldman Sachs for Structured Products.<\/p>\n

The index, equal weighted, will be calculated dividends reinvested with a deduction of 5% annual.<\/p>\n

The reweighting of the constituents of the index will be quarterly while stock selection will be annual.<\/p>\n

Responding to investor expectations<\/strong><\/p>\n

According to Laurent Babikian, Director of Investor Engagement at CDP Europe \u00ab this index marks a major milestone in delivering a selection of France\u2019s biggest corporates who outperform the market across three critical themes of climate change, water and forests \u00bb<\/em>.<\/p>\n

It remains to be seen whether the performance will meet expectations for investors who want to be invested on top rated environmental firms.