The STOXX ESG Countries Eurozone PAB Index tracks the performance of 60 securities selected from a group of companies considered leaders in environmental, social, and governance (ESG) criteria.

Companies that, according to ISS ESG data, do not comply global norms or are active in controversial business areas such as controversial weapons and tobacco are excluded. Furthermore, companies that generate more than 5 percent of their revenue from pornography, nuclear energy, or fossil fuels (1% revenue threshold for coal related activities), excluding natural gas, are not eligible for inclusion in the index.  Companies that  generate 50% or more revenues from power generation with carbon intensity of lifecycle GHG emissions higher than 100g CO2e/kWh are also excluded.  In addition, companies that, according to ISS ESG, significantly impact one of the 17 UN Sustainable Development Goals and are not aligned with the goals of the Paris Climate Agreement are excluded from the selection process. Furthermore, only companies that have set or committed to targets in accordance with the SBTi are selected.

The Eurozone STOXX® Global 1800 Index components that meet the above criteria are included in The index is ranked in descending order of its ESG scores; securities that fall into the bottom 50 percent are excluded from the selection. Companies that fall into the top 10 percent based on their carbon emissions intensity are also excluded. Of the remaining securities, the 60 securities with the largest free float are included in the STOXX ESG Countries Eurozone PAB Index, with ICB industry-based restrictions ensuring diversification. The weighting process is subject to optimization to meet the requirements of Paris-aligned EU benchmarks. The index objective is to reduce carbon emissions intensity by at least 40% compared to the leading index and to meet the 7% decarbonization target compared to the previous year.

Index Guides, Benchmark Statements, and other reports are available under the Data tab.