STOXX Ltd., the operator of Deutsche Börse Group’s index business and a global provider of innovative and tradable index concepts, announced that it has licensed the EURO iSTOXX 50 ESG Focus Index and the EURO iSTOXX 50 ESG Focus GR Decrement 5% Index to the British bank Barclays as underlyings for the issuance of structured products.
We observe a growing demand for equity investments driven by ESG criteria and the launch of the EURO iSTOXX 50 ESG Focus Index is a key step forward. The index stands out as the natural ESG version of the EURO STOXX 50 benchmark, since both indices share the same underlying stock basket. A decrement version completes the family to meet current client demand.
Barclays is very pleased to partner with STOXX and leading ESG score provider Sustainalytics to enhance the current ESG offering. This launch highlights Barclays’ commitment to offering ethical investment solutions as ESG factors come to feature more prominently in investors’ decisions,” said Arnaud Heckenroth, Managing Director, Head of EMEA Equity Exotics and Hybrid Structuring with Barclays.
By offering these EURO iSTOXX 50 ESG Focus indices together with Barclays we enable investors to overweigh environmental, social and governance attributes in their respective portfolios. These indices are derived from our established flagship index EURO STOXX 50. Companies that rank highest in terms of ESG scores are over-weighted, according to a transparent rating model provided by Sustainalytics,” added Matteo Andreetto, CEO STOXX.
The EURO iSTOXX 50 ESG Focus GR Decrement 5% index replicates the performance of the EURO iSTOXX 50 ESG Focus Gross Return Index assuming a constant 5% performance deduction per annum. The performance deduction accrues constantly on a daily basis. Consequently, due to the percentage of performance being subtracted, the EURO iSTOXX 50 ESG Focus GR Decrement 5% Index is underperforming the standard EURO iSTOXX 50 ESG Focus Gross Return index that includes a gross dividend investment. The index universe is defined by the EURO STOXX 50 Index.