Euronext is spearheading a significant transformation in European capital markets by redefining ESG, from its traditional meaning of Environmental, Social, and Governance to a new framework: Energy, Security, and Geostrategy. This strategic rebranding reflects an increasing urgency to direct investment toward Europe’s defence, energy independence, and infrastructure resilience.
“Since 2022, and even more in recent months, we have witnessed the emergence of a new geopolitical order centred around three key notions, forming a New ESG: Energy, Security, Geostrategy,” said the CEO and Chairman of the Managing Board of Euronext, Stéphane Boujnah.
In response to increasing calls from EU leaders to strengthen defence capabilities and reduce reliance on foreign powers, Euronext’s initiative includes enhanced financing tools, faster bond listings, and a new generation of ESG indices. This marks a pivotal effort to boost European sovereignty and strategic autonomy.
Read More: What Is ESG Performance And How To Measure It?
New Indices Reflect Europe’s Strategic Priorities
Euronext is launching three thematic indices designed to guide capital toward high-priority sectors:
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The European Energy Security Index: Highlights firms in conventional, nuclear, renewable, and critical energy infrastructure.
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The European Aerospace & Defence Index: Features innovators in defence technology and advanced manufacturing.
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The European Strategic Autonomy Index: Targets companies enhancing resilience across energy, defence, infrastructure, and tech.
These indices are already serving as benchmarks for investment products developed in collaboration with asset managers and financial institutions.
Regulatory Alignment and ESG Index Revisions
To align with evolving regulatory frameworks, Euronext will revise methodologies for its flagship ESG indices, CAC 40 ESG® and MIB ESG®, by June 2025. Under the new criteria, exclusions will only apply to organizations involved in weapons banned by international treaties, matching with ESMA’s updated guidance. ESG rating agencies are being encouraged to follow suit.
Also Read: How To Calculate Your Individual ESG Score
Expediting Defence Sector Access to Capital
To further support the defence ecosystem, Euronext is rolling out its IPOready Defence programme in Q3 2025, with support from the EU. This initiative will streamline IPO processes and connect companies with investor networks. Additionally, bond listings for defence firms will now be completed in just two days.
Industrial players are already taking note. Thyssenkrupp, currently spinning off its naval division TKMS, stated it would assess the relevance of Euronext’s program, emphasizing the need for enhanced military readiness across Europe.
Shaping the Future of European Investment
With EU Commission President Ursula von der Leyen announcing up to €800 billion for modernizing Europe’s defence industry, Euronext’s ESG shift places it at the forefront of aligning capital with geopolitical strategy. Investors are increasingly eyeing opportunities in defence, energy, and critical infrastructure, areas now central to Europe’s financial future.
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