Amundi plans ETF on Euronext's new ESG index

French asset management giant Amundi has licensed the CAC40 ESG index from Euronext just four months after the European exchange group launched the list.

Euronext said on Monday it has reached agreement with the largest European asset manager to allow Amundi to use the index as the basis for a new exchange-traded fund.

Fannie Wurtz, head of Distribution & Wealth Division & Head of ETF, Indexing & Smart Beta at Amundi, said: “We strongly believe that ETFs and index management have a key role to play in the democratisation of the access to responsible investing and the support of a transition to a more sustainable world.”

The CAC 40 ESG index is designed to identify the 40 companies within the CAC Large 60 Index that demonstrate the best environmental, social and governance (ESG) practices

Wurtz added: “We warmly welcome Euronext’s initiative and the launch of the CAC 40 ESG index and we are delighted to be able to provide investors with access to this index though an ETF in the coming weeks.”

The CAC 40 ESG Index, launched in late March, is Euronext’s first national ESG index.

Stéphane Boujnah, CEO and chairman of the Managing Board of Euronext N.V., said: “This is for Euronext an important step to accelerate the transition to a sustainable economy, following the launch of the CAC 40 ESG.”

He added: “The forthcoming Amundi ETF on this index will allow investors to finance sustainable projects and companies, in line with the UN Global Compact Principles and the SRI label for sustainable and responsible investment.”

Boujnah said on Thursday last week Euronext is looking to move business away from its incumbent clearing house LCH to the Italian clearing house CC&G that Euronext acquired as part of Borsa Italiana in April.

Manulife Investment Management said last week that emerging markets including those in Asia represent some of the best environmental, social and governance (ESG) investment opportunities.