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Major Italian Bank Implements STOXX Low Carbon Products

Release date: 15 Jul 2019 | STOXX

Major Italian Bank Implements STOXX Low Carbon Products

Zug (July 15, 2019) – STOXX Ltd., the operator of Deutsche Boerse Group’s index business and a global provider of innovative and tradable index concepts, has licensed the EURO iSTOXX® 50 Low Carbon NR Decrement 3.75% Index to Banca IMI, Intesa Sanpaolo Group, as an underlying for structured products. This is the first time that an Italian bank is distributing a product linked to a low-carbon index on the Italian market.

“We share the objective of the European Commission which introduced draft legislation with the aim of ensuring that the financial services industry does its part in the fight against climate change. In particular, global investors are increasingly aware of the long-term risks posed to their investments by climate change. We see the evolution towards a low-carbon economy as an opportunity for our investors to play a role in the transition towards a greener economy,” said Valeria Giovanna Zorzi, Head of Product Development, Global Market Securities – Global Market Sales from Banca IMI, Intesa Sanpaolo Group.

“We are very happy that one of the major Italian banks is now adopting STOXX Low Carbon Indices. Reducing carbon emissions is a global objective set out by the Paris climate convention. The EURO STOXX® 50 Low Carbon Index offers clients a tradable standardized solution to decarbonize their portfolios and address long-term climate risks,” said Willem Keogh, STOXX’s Head of ESG, Thematic and Factor Solutions. “Tradability is supported by derivatives exchange Eurex, which launched futures on the EURO STOXX 50 Low Carbon Index as part of their ESG derivatives offering earlier this year.” 

The low-carbon version of the EURO STOXX 50® Index offers a reduction in carbon emissions by utilizing both estimated and reported carbon intensity scores provided by STOXX’s research partners CDP and ISS ESG. The EURO STOXX 50 Low Carbon is price-weighted with a weight factor based on the free-float market capitalization multiplied by the carbon intensity factor (Z-score) of each constituent. The resulting tilt overweights stocks with lower carbon intensities and underweights those with higher emissions.

About STOXX Ltd.
STOXX Ltd. is a global index provider, currently calculating a global, comprehensive index family of over 10,000 strictly rules-based and transparent indices. Best known for the leading European equity indices EURO STOXX 50, STOXX Europe 50 and STOXX Europe 600, STOXX Ltd. maintains and calculates the STOXX Global index family which consists of total market, broad and blue-chip indices for the regions Americas, Europe, Asia/Pacific and sub-regions Latin America and BRIC (Brazil, Russia, India and China) as well as global markets.

To provide market participants with optimal transparency, STOXX indices are classified into four categories. Regular “STOXX” indices include all standard, theme and strategy indices that are part of STOXX’s integrated index family and follow a strict rules-based methodology. The “iSTOXX” brand typically comprises less standardized index concepts that are not integrated in the STOXX Global index family, but are nevertheless strictly rules-based. While indices that are branded “STOXX” and “iSTOXX” are developed by STOXX for a broad range of market participants, the “STOXX Customized” brand covers indices that are specifically developed for clients and do not carry the STOXX brand in the index name. Under the Omnient brand, STOXX offers custom indices from its existing index universe.

STOXX indices are licensed to more than 600 companies around the world as underlyings for Exchange Traded Funds (ETFs), futures and options, structured products and passively managed investment funds. Three of the top ETFs in Europe and approximately 25% of all assets under management are based on STOXX indices. STOXX Ltd. holds Europe's number one and the world’s number two position in the derivatives segment.

STOXX is part of Deutsche Boerse Group, and also calculates, disseminates and markets the DAX indices.

STOXX, Deutsche Boerse Group and their licensors, research partners or data providers do not make any warranties or representations, express or implied, with respect to the timeliness, sequence, accuracy, completeness, currentness, merchantability, quality or fitness for any particular purpose of its index data and exclude any liability in connection therewith. STOXX, Deutsche Boerse Group and their licensors, research partners or data providers are not providing investment advice through the publication of indices or in connection therewith. In particular, the inclusion of a company in an index, its weighting, or the exclusion of a company from an index, does not in any way reflect an opinion of STOXX, Deutsche Boerse Group or their licensors, research partners or data providers on the merits of that company. Financial instruments based on the STOXX® indices, DAX® indices or on any other indices supported by STOXX are in no way sponsored, endorsed, sold or promoted by STOXX, Deutsche Boerse Group or their licensors, research partners or data providers.

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