The World’s First ESG Future – The Result of a Successful Collaboration
By Swedbank Robur
Collaboration between competitors within any sector is quite rare. But when it comes to sustainability, collaboration is a key success factor. One important step to integrate ESG into all aspects of portfolio management has been the development of ESG derivatives. In October 2018, Nasdaq launched the world’s first ESG Future, the OMXS30ESG future, which was developed in cooperation with Swedbank Robur.
In 2018, Swedbank Robur took yet another step towards its vision to become a world leader in sustainable value creation, with the decision that all investments in some of its funds, including derivatives, should be ESG compliant.
Magnus Linder, Senior Derivatives Trader, Swedbank Robur
“The challenge back in 2018 was that there were no listed ESG derivates to trade. Therefore, we initiated a collaboration with Nasdaq and other global exchanges to launch ESG futures on major indices,” says Magnus Linder, senior derivatives trader at Swedbank Robur.
Nasdaq was positive about the idea, and a close collaboration took form. Together with other stakeholders, the work began to develop an index that would be easy to trade and fulfill the increasing interest for products with sustainability at its core. With a strong commitment and dedicated work by all of the collaboration partners, the world’s first listed ESG future was soon a reality.
Swedbank Robur’s vision is to be a world leader in sustainable value creation. Sustainable value creation refers to the ambition to create a healthy, long-term return for its savers while also contributing to the positive development of society and the environment. To achieve this, Swedbank Robur works actively to step-by-step raise the sustainability bar constantly in its product offering. The cooperation with Nasdaq in the development of the OMXS30ESG future was one way for the largest Swedish fund company to take sustainable investment to the next level – ensuring that the sustainability screening also encompassed derivatives.
“For Swedbank Robur, ESG derivatives are necessary to provide our customers with a full ESG exposure while also enabling us to manage daily cash flows. Money raised through OMXS30ESG future ensures that our funds may be fully invested and still have money for cash withdrawals, a very tangible example of how sustainable investments create real value for investors,” says Linder.
“It has been interesting and rewarding to be part of the development of the world’s first sustainable future,” says Kristin Wallander, senior sustainability analyst at Swedbank Robur.
Kristin Wallander, Senior Sustainability Analyst, Swedbank Robur
Wallander participated in the determination of the screening criteria and insight on companies’ ESG work. Her expertise has thereafter been widely requested, and over the last two years, she has been involved in the development of several ESG derivatives.
“Joining forces and placing sustainability at the core when evolving a new route to shift capital in a more sustainable direction were definitely key success factors in this. The increasing interest in the market is also unquestionable proof that sustainability has moved a long way from a ‘must.’ Today, it is very much a business-driven and central factor in creating long-term profitability and value for companies, investors and society,” says Kristin Wallander.
Since the launch of Nasdaq’s OMXS30ESG future, more exchanges have followed. Swedbank Robur stands for more than one-third of the volume in all exchange-listed ESG derivatives.
About Swedbank Robur:
Swedbank Robur is one of Scandinavia’s largest asset managers and one of the leading actors when it comes to sustainable and responsible investments. Swedbank Robur offers mutual funds and discretionary investment management services for private individuals and institutional clients. The product range includes investment funds covering all major regions, sectors, and asset classes.