Euronext unveils targeted ‘ESG’ complex focussing on European strategic autonomy
6th May, 2025|Radi Khasawneh
Euronext has launched a new series of thematic indices targeting “Energy, Security and Geostrategy” in a bid to support a change of focus in the region.
The initiative, announced on Tuesday, is an effort to rethink Environmental, Social and Governance (ESG) investment that has stalled globally in the wake of political changes and macro uncertainty.
“Amid global tensions, Europe must defend its own values, interests and way of life,” Stephane Boujnah, chief executive and chairman of the managing board of Euronext said in a release. “To guarantee our capacity for innovation, our energy supply and our defence capabilities, we all need to take action now.
“Investors are becoming more eager to increase their exposure to the growing opportunities related to the ongoing investments in aerospace, defence, energy and strategic infrastructure in Europe.”
The pan-European exchange group has launched the Euronext European Energy Security Index, the Euronext European Aerospace and Defence Index and the Euronext Strategic Autonomy Index. Each of the benchmarks tracks sector specific companies that allow investors to gain targeted thematic exposure.
At the same time, the company has also committed to “before June 2025” revisiting the methodologies of its existing CAC 40 ESG and MIB ESG indices, to reflect the latest European Securities and Markets Authority (ESMA) guidelines. That includes restricting defence exclusions to armament manufacture that is directly prohibited by international treaties. The exchange will further roll out tailored financing solutions aimed at European aerospace and defence companies, it said.
“Euronext today announced a comprehensive set of measures that will give European companies that contribute to the European continent’s strategic autonomy increased visibility and enhanced access to capital markets,” Boujnah added. “As a company deeply committed to European growth and resilience, Euronext will also introduce programmes to facilitate its own employees’ engagement in military reserve forces in the countries where Euronext operates. Euronext teams are committed to build a stronger, more innovative and more autonomous Europe.”
Speaking after rival Deutsche Boerse announced positive earnings for the first quarter of 2025, the German exchange group’s chief executive Stephan Leithner identified investment flows into European equities as well as economic stimulus into defence and infrastructure as two key “mid-to-long-term opportunities” for the firm beyond global volatility in March and April.
The news follows a shift in regional spending expectations in response to policy changes from the US administration that was elected in November. Ursula von der Leyen, president of the European Commission, on March 6 unveiled an €800 billion (£672bn) defence spending plan in response to a change in US policy towards the Ukraine conflict. German chancellor-elect Friedrich Merz at the same time said the country will lift its strict debt rules to accommodate extra defence spending, leading to a flurry of positioning from traders.
