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First ESG-Compliant Index Launched at Nasdaq Stockholm

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Stockholm (NordSIP) – On July 9, Nasdaq Nordic launched the OMX Stockholm 30 ESG Responsible Index, an ESG-compliant version of its OMXS30 European index, which includes the 30 most traded securities on Nasdaq Stockholm. The responsible version of the index followes a systematic rule-based ESG screening.

Nasdaq Nordic is the first to issue an ESG index based on a major exchange-traded index. It will serve as a benchmark for funds, and as the underlying index for ETFs, structured products and derivatives. “We have developed this index due to a demand from our members. The interest for responsible investments is growing, and we want to provide investors with a viable alternative with maintained turnover and liquidity,” comments David Augustsson, Head of Corporate Communications, at Nasdaq in Stockholm.

- Promotion -

According to Augustsson, the corresponding indices in Denmark and Finland, the OMXC25 and OMXH25, will also receive an ESG-compliant sister index in the fall.

The criteria of inclusion imbedded in the ESG screen have been developed by Nasdaq together with ISS-Ethix. The screen systematically excludes companies with verified and ongoing breaches of international norms, verified and ongoing involvement in cluster munition, anti-personnel mines, nuclear weapons as well as biological and chemical weapons and finally, companies involved, to a certain degree (generally >5% of revenue), in alcohol, tobacco, military equipment, pornography, gambling and fossil fuels (>50% revenue).

Featured photo by energepic.com from Pexels

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