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.

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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