DAX 50 ESG Index gets licensed to Raiffeisen Centrobank

Maria Nikolova

This will be the first time this index is used as an underlying for a certificate.

Qontigo, part of Deutsche Börse Group, has licensed the DAX 50 ESG Index to the Austrian Raiffeisen Centrobank as an underlying for a certificate.

The DAX 50 ESG index employs two complementary approaches to incorporate ESG principles into the selection criteria: standardized negative screens for companies that are involved in controversial or unsustainable activities; and positive screening based on ESG scores. The methodology is designed to ensure a German market ESG flagship index whose liquidity and risk-return characteristics are similar to those of the flagship DAX®.

The DAX 50 ESG tracks the performance of the 50 largest, most liquid German market stocks that have comparably good performance based on their Environmental, Social and Governance criteria. Further, the companies must have passed standardized ESG screens related to Global Standards Screening, as well as to their involvement in controversial weapons, tobacco production, thermal coal, nuclear power and military contracting.

The base universe of the index is the HDAX universe which comprises the joint set of companies included in DAX, MDAX® and TecDAX®.

“Sustainability is firmly established in the minds of investors, who believe in the potential of ESG-compliant companies. The DAX 50 ESG index sends a positive signal that sustainability and investment returns go hand-in-hand. Our certificates universe will become even more appealing now to investors looking for a German market ESG index,” commented Philipp Arnold, Head of Structured Products Sales at Raiffeisen Centrobank AG.

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