{"id":239019,"date":"2023-11-21T13:55:00","date_gmt":"2023-11-21T13:55:00","guid":{"rendered":"https:\/\/news.republicofgreen.com\/nasdaq-2022-sustainability-report-investment-community\/"},"modified":"2023-11-21T13:55:00","modified_gmt":"2023-11-21T13:55:00","slug":"nasdaq-2022-sustainability-report-investment-community","status":"publish","type":"post","link":"https:\/\/news.republicofgreen.com\/nasdaq-2022-sustainability-report-investment-community\/","title":{"rendered":"Nasdaq 2022 Sustainability Report: Investment Community"},"content":{"rendered":"

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Nasdaq<\/p>\n

ESG Indexes<\/strong><\/p>\n

The OMX Stockholm 30 ESG Responsible Index (OMXS30ESG), introduced worldwide in June 2018, was the first ESG version of an established exchange benchmark. It was followed by the listing of ESG index futures contracts in November 2018. The OMXS30ESG is an ESG responsible version of the OMX Stockholm 30 Index, which is the leading share index on Nasdaq Stockholm. The OMXS30ESG is based on OMXS30, which consists of the 30 most traded securities on Nasdaq Stockholm, followed by a systematic criteria-based ESG screening where securities that fail the criteria are excluded. The OMXS30ESG Index is a market cap weighted index.<\/p>\n

The liquidity of its constituents results in a highly suitable underlying benchmark for derivatives products. In addition, the OMXS30ESG is also designed to be used for structured products, such as warrants, index bonds options, exchange traded funds and other non-standardized derivatives products. The composition of the OMXS30ESG index is evaluated twice a year, at the beginning of January and July. In November 2021, Nasdaq expanded its ESG derivative offering with the listing of options based on the OMXS30ESG Index.<\/p>\n

We manage dozens of indexes that integrate ESG criteria into the index methodology. We achieve this in a variety of ways, with some indexes designed purely as ESG and others designed with ESG criteria as an overlay to a broader investment thesis. The index with the largest tracking fund is the ISE Cyber Security Index.<\/p>\n

Others include the OMX Helsinki 25 ESG Responsible Index, the OMX Copenhagen 25 ESG Responsible Index and the Nasdaq Future Global Sustainability Leaders Index. In 2021, we created ESG versions of two of our flagship indexes and now offer the Nasdaq 100 ESG Index and the Nasdaq Next Generation 100 ESG Index.<\/p>\n

Green Equity Designations1<\/sup><\/strong><\/p>\n

Nasdaq launched Green Equity Designations on the Nordic markets in 2021 in response to increased demand for sustainable investments and extensive growth in Nasdaq Sustainable Bond Markets. With issuers and investors searching for more green performance indicators on the equity market, Green Equity Designations aim to enable visibility and transparency for investors with two voluntary designations, Nasdaq Green Equity Designation and Nasdaq Green Equity Transition Designation. Through Green Equity Designations, Nasdaq can support environmentally sustainable companies or companies committed to transition to increase their visibility, transparency and credibility towards investors, business and other stakeholders.<\/p>\n

The Nasdaq Green Equity Designation is currently available for companies on the Nasdaq Nordic stock exchanges. As the financial ecosystem anticipates upcoming sustainability and climate-related regulations, Nasdaq may see increasing interest in green equity classification from companies and investors outside the Nasdaq Nordic exchanges. In March 2023, the World Federation of Exchanges (WFE) launched its classification standard for Green Equity with reference to the existing model from Nasdaq\u2019s Green Equity Designation, highlighting Green Equity Designation\u2019s importance in helping investors assess companies that are generating revenue from products and services that contribute to positive environmental outcomes.<\/p>\n

Nasdaq Sustainable Bond Network<\/strong><\/p>\n

The Nasdaq Sustainable Bond Network, launched in late 2019, is a global platform that aims to increase transparency for environmental, social and sustainable bonds. The Nasdaq Sustainable Bond Network connects issuers of sustainable bonds with investors, empowering them to evaluate impact and make informed investment decisions on sustainable bonds. The platform allows issuers of sustainable bonds to make their sustainable bond data more accessible to investors and other stakeholders. Investors can in turn use the platform to evaluate, track and create impact reports based on issuers\u2019 ESG bond reporting. The database simplifies sustainable investing with an intuitive, easy-to- use solution that allows investors to discover, compile and compare sustainable bonds as well as generate impact reports. The platform also provides issuer-level information on UN Sustainable Development Goals allocation.<\/p>\n

In 2022, we launched functionalities that report on the EU taxonomy alignment of projects financed by issuers\u2019 green and sustainable bonds. Furthermore, we reached coverage of more than 1,500 issuers and 14,000 securities globally.<\/p>\n

Investors in sustainable bonds are increasingly reporting on the impact of their investments and how their proceeds are allocated. We expect this trend to continue while seeing a larger incorporation of issuer-reported sustainable bond data in investment due diligence.<\/p>\n

Total Number of Issuers and Bonds on the Nasdaq Sustainable Bond Network as of December 31<\/strong><\/p>\n

Issuers:<\/p>\n