Euronext and Vigeo create a new esg index dedicated to companies from emerging market countries

Euronext, the primary exchange in the Eurozone, and Vigeo, the leading European agency in Corporate Social Responsibility ratings, will launch a new ESG Index on the 22 June 2015: Euronext-Vigeo EM 70.

Article also available in : English EN | français FR

This index distinguishes 70 companies from a universe [1] of 900 listed companies in developing countries which have the highest performances in corporate responsibility based on their ratings by Vigeo.

Companies’ weighting in the index, calculated by Euronext, is correlated with the score assigned by Vigeo. This represents an alternative approach to traditional methods based on float. It allows for positive discrimination in favour of those listed companies—most of which operate internationally—that are the most actively engaged in promoting compliance with universal public standards, particularly in the field of human rights, decent employment practices, environmental protection, corporate governance, business ethics and contributions to social economic development in areas where they operate.

The index components are reviewed and updated twice a year, in June and in December. Full details are shown in the appended tables and on Euronext’s and Vigeo’s websites: http://www.vigeo.com/csr-rating-agency/fr/indiceeuronextvigeo.

The range of Euronext-Vigeo indices is composed of the following 8 indices:
- Euronext-Vigeo EM 70,the 70 most advanced companies in emerging countries
- Euronext-Vigeo France 20, the 20 most advanced French companies
- Euronext-Vigeo UK 20, the 20 most advanced British companies
- Euronext-Vigeo Benelux 20,the 20 most advanced Benelux companies
- Euronext-Vigeo US 50, the 50 most advanced American companies
- Euronext-Vigeo Eurozone 120, the 120 most advanced companies in the Eurozone
- Euronext-Vigeo Europe 120, the 120 most advanced European countries
- Euronext-Vigeo World 120, the 120 most advanced companies globally

Methodology :
Like the seven other indices in the Euronext-Vigeo range, the companies in the Euronext-Vigeo EM 70 index are those to which Vigeo has attributed the highest consolidated scores. These include top ratings for companies’ ability to master risks related to social responsibility and deploy strong commitments in support of sustainable development. Vigeo’s assessment model rates each company on nearly 330 indicators. No sectors are excluded per se.
However following a decision by Vigeo’s methodology team, companies that are the subject of controversy on critical issues involving social responsibility and that do not supply comprehensive public information on corrective measures taken or discussions they may have entered into with stakeholders regarding such controversies, are excluded.

Next Finance , June 2015

Article also available in : English EN | français FR

Footnotes

[1] Coverage of countries developed by Vigeo: more than 900 companies in over 30 countries

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