Euronext's “New ESG”: Redefining Sustainability through Energy, Security, and Geostrategy
In May 2025, Euronext introduced a radical redefinition of ESG investing by launching a new framework grounded in Energy, Security, and Geostrategy. This "New ESG" responds to Europe’s urgent need to reinforce its strategic autonomy amid deteriorating geopolitical conditions. As Stéphane Boujnah, Euronext’s CEO, stated, the shift reflects the emergence of a new geopolitical order and a recognition that capital markets must be aligned with Europe's values, interests, and resilience imperatives. Through this initiative, Euronext offers a suite of financial tools to help European aerospace, defence, and energy companies secure financing, gain visibility, and attract a broader investor base. The program includes thematic indices, tailored equity financing schemes, revised ESG methodologies, and a new bond segment, aiming to bridge the gap between strategic needs and capital flows.
At the core of this transformation lies a new series of thematic indices designed to channel investments toward companies that contribute to Europe's autonomy. Three flagship indices were launched: the European Energy Security Index, the European Aerospace & Defence Index, and the European Strategic Autonomy Index. Each index targets a specific pillar of Europe's security architecture. The energy index includes firms in nuclear, renewable, and critical infrastructure sectors. The security index focuses on aerospace and defence technology innovators. The geostrategy index captures broader strategic independence contributors across sectors including defence, energy, and advanced manufacturing. These indices are designed not only as benchmarks but as investment products in collaboration with banks and asset managers. By providing structured exposure to essential industries, Euronext’s indices mark a turning point in integrating financial instruments with the continent’s industrial sovereignty goals.
Euronext is also overhauling its ESG screening methodologies for its major blue-chip indices, such as the CAC 40 ESG® and MIB ESG® indices. Scheduled for implementation in June 2025, these revisions will align with ESMA’s updated guidance on fund naming conventions and industry inclusion standards. Critically, defence sector companies will no longer be excluded categorically. Only firms involved in activities prohibited by international treaties—such as certain types of banned weaponry—will be screened out. Euronext has explicitly called on ESG rating agencies to adopt this narrower definition of “controversial weapons” and recognize the legitimacy of conventional defence activities that support democratic societies. This shift signals an institutional move away from the blanket stigmatization of defence, aligning ESG investment frameworks with geopolitical realism.
Another major element is the creation of a European Aerospace and Defence Growth Hub under the ELITE network, aimed at enhancing the equity financing environment for defence-sector SMEs and supply chain actors. Euronext will also host dedicated Funding Days in July 2025 and launch IPOready Defence in Q3 to train and prepare companies for capital market access. These programs will be supported by the European Union and the European Investment Bank, under the InvestEU framework, and involve cooperation with public financial institutions and industry associations. By building a pipeline of investment-ready companies, Euronext seeks to scale innovation and manufacturing capacity in the aerospace and defence sectors. These tools reflect a strategic choice to mobilize European financial infrastructure not only for commercial gain but to serve public security goals.
To further support sovereign financing, Euronext has also introduced a European Defence Bond Segment. This allows for accelerated listing of defence-related bonds and improved visibility for institutional and retail investors. The segment provides a fast-track admission process and access to Euronext’s deep secondary fixed income markets, already active in trading sovereign and supranational debt. Euronext's move complements ongoing EU-level initiatives like SAFE (Security and Action for Europe), by creating a market infrastructure tailored to defence financing. These instruments will facilitate liquidity and broaden participation in strategic projects. The ambition is to turn the capital market into a durable backbone for European rearmament and industrial modernization.
Lastly, Euronext is extending its institutional commitment by introducing a reservist support programme for employees engaged in national military service. The firm guarantees continued salary and benefits for employees in training or active reservist roles, reinforcing the concept that sovereignty is a shared civic and corporate responsibility. Euronext frames this as part of its broader mission to support resilience not only in markets but in society. In sum, the New ESG marks a paradigmatic shift—away from sustainability as mere environmental stewardship toward a more comprehensive vision where energy security, industrial defence capacity, and strategic autonomy are viewed as foundational public goods. This redefinition responds to the evolving European security architecture and creates a new path for aligning investment frameworks with defence and resilience.
Sources
Euronext, Press Release: Euronext strengthens its support for European strategic autonomy with New ESG focused initiatives: Energy, Security and Geostrategy, 6 May 2025
ESMA Guidelines on Fund Naming (2024)
Reuters, Euronext rebrands ESG in drive to help European defence firms, May 6, 2025
Euronext official documentation and media statements, 2025