Nasdaq announced the launch of futures based on the recently launched OMXS30 ESG Responsible index (OMXS30ESG). The product is the first exchange listed and ESG compliant index future in the world.
“In recent years we have seen institutions increase efforts to integrate sustainability into their investment strategies, with the Nordic region being in the forefront of this trend,” says Alessandro Romani, head of European Equity Derivatives at Nasdaq, in a statement. “Those looking to invest in a more sustainable way need more investment products based on established and liquid indexes. Our existing OMXS30 index future contract is among the most traded in Europe and we expect to see the same interest for the ESG version.”
The OMXS30ESG Index was developed in cooperation with a number of leading Nordic asset managers, including Swedbank Robur.
“At Swedbank, innovation and constant development are an important part of the business, and it is in our interest to participate in and influence product development. Sustainability screening is applied in more and more funds, and we see a great need from our customers that we have sustainable investments – therefore we are pleased to see that Nasdaq is being responsive for customer needs and we think the OMXESG will be successful,” said Magnus Linder, responsible for derivative trading at Swedbank Robur, in a statement.
The OMXS30ESG Index and the Futures tracking it are the latest in a number of recent Nasdaq Nordic initiatives aimed at making it easier for investors of all sizes to invest and manage risk in a more sustainable way.
In March 2017, Nasdaq launched an ESG reporting guide for listed companies in the Nordic and Baltic region, followed by a one year ESG pilot program, where Nasdaq guides 36 participating companies on how to report on ESG. This year, the Nasdaq Sustainable Bond Market, the world’s second largest in terms number of bonds listed, was expanded into Finland while a segment for sustainable bonds aimed also at retail investors was launched in Sweden.
Nasdaq is planning to launch corresponding ESG indexes for its two other Nordic benchmark indexes, the OMXC25 in Denmark and the OMXH25 in Finland in the near future.