Goldman Lists Leveraged ESG Products in Europe

By Dieter Holger

Goldman Sachs Group Inc. (GS) is listing at least six sustainable finance products in Europe that track indexes from STOXX Ltd., a unit of Deutsche Boerse AG (DB1.XE), STOXX said Monday.

The leveraged products--which include derivatives--will invest in companies found in three indexes: the EURO STOXX 50 Low Carbon Index, the STOXX Europe Climate Impact Ex Global Compact Controversial Weapons & Tobacco Index and the STOXX Europe 600 ESG-X Index.

The first two indexes focus on environmental performance by screening out companies that don't score highly with ISS environmental, social and governance ratings or receive at least a B- rating from CDP, a nonprofit platform where more than 7,000 companies disclose environmental metrics.

The last index is a version of the popular STOXX Europe 600 benchmark that excludes companies involved in controversial weapons, tobacco, thermal coal and those that don't adhere to the UN Global Compact pact.

Goldman's new ESG products will first trade on Euronext Amsterdam market as the first leveraged products linked to STOXX's ESG indexes. The American investment bank could also bring the products to other European markets, a STOXX spokesman said.

"After opening a new chapter in responsible investing with the listing of futures on three ESG benchmark indices, we are now reaching another milestone by entering into the leveraged-products space," said Inderpal Gujral, head of product at STOXX.

STOXX offers more than 100 ESG and sustainability indexes, excluding customized benchmarks with ESG features, STOXX said.

Write to Dieter Holger at [e-mail]; @dieterholger

(END) Dow Jones Newswires

May 13, 2019 12:46 ET (16:46 GMT)

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