Euronext is radically redefining the future of European finance by repositioning ESG—from “Environmental, Social, and Governance” to “Energy, Security, and Geostrategy.” This bold pivot reflects the geopolitical reality facing Europe and aims to align capital markets with the EU’s long-term sovereignty, defence readiness, and energy resilience goals.
“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 Stéphane Boujnah, CEO and Chairman of the Managing Board of Euronext.
Catalyzing Strategic Investment
This rebrand is more than symbolic. Euronext is launching new thematic indices to guide institutional capital toward sectors critical to Europe’s independence:
- European Energy Security Index: Covers renewable, nuclear, and critical energy infrastructure.
- European Aerospace & Defence Index: Tracks companies advancing military capabilities and defence innovation.
- European Strategic Autonomy Index: Includes firms enhancing Europe’s resilience across technology, infrastructure, and energy systems.
These indices are being embedded into structured investment products in collaboration with banks and asset managers, signaling rapid adoption in capital markets.
Regulatory Realignment and Capital Acceleration
In line with the EU’s updated regulatory stance, Euronext will overhaul methodologies for its flagship ESG indices—CAC 40 ESG® and MIB ESG®—by mid-2025. Defence companies will only be excluded if involved in prohibited weaponry under international treaties, enabling greater participation from aerospace and defence sectors while maintaining ESG credibility.
To complement this, the upcoming IPOready Defence programme, launching in Q3 2025, will streamline access to public capital for European defence firms—supported by EU funding and fast-track bond listing procedures, which will now take only two days.
Responding to Strategic Realities
Euronext’s repositioning reflects a broader shift in Europe’s strategic narrative. Amid escalating global tensions and war on the continent, EU leadership is prioritizing defence and energy resilience as cornerstones of sovereignty. President Ursula von der Leyen confirmed earlier this year that the EU could mobilize up to €800 billion to revamp the continent’s defence industrial base.
Companies like Thyssenkrupp, Rheinmetall, and Leonardo stand to benefit from this evolving investment landscape, especially as they evaluate the capital access enabled by Euronext’s platform.
Redrawing the Investment Map
With this move, Euronext is at the forefront of a financial transformation that places national security and energy stability at the heart of European finance. It responds directly to investor demand for exposure to resilient sectors and repositions European exchanges as engines of economic and geopolitical strategy.
This shift could become a defining force in capital allocation over the next decade—reshaping ESG investing and challenging long-held notions of sustainability to reflect the realities of a turbulent world.
