Plus500, the London-listed FTSE 250 multi-asset fintech group (LON:PLUS) has announced the launch of a new ESG trading product suite. This new array of instruments includes ESG scores for the Group’s vast range of stock CFDs alongside exclusive ESG Impact Indices that will be tradeable on its OTC trading platform and stocks on its Share Dealing trading platform.
ESG Impact Indices featured as part of this new suite include Global Warming Reduction, Quality of Life, Poverty Reduction, Diversity and Inclusion and Sustainable Resources. Thanks to these additions, Plus500 users can enjoy a broader choice of instruments and effective portfolio diversification across growing market segments, such as climate change, green energy, and sustainable resources.
The product suite enables customers to make informed decisions based on data-driven insights that are rarely included in traditional market analysis, such as index annualised return, annualised volatility, and Sharpe ratio.
The intuitive and easy-to-use ESG scoring provides further insights on each of the index constituent’s sustainability and long-term resilience on Environmental, Social and Governance factors. With this wealth of information at hand, clients can accurately analyse a company’s score and performance, factoring in any associated potential opportunities, growth, and risks.
Ranging from 1 (low) to 10 (high), the Plus500 ESG scoring system takes into consideration several factors, including:
● The total score, calculated as the average of all subcategories, excluding the main categories’ score.
● The main category scores, calculated as the average of the relevant subcategory scores.
● Industry ratings: Leader, Above Average, Average, Below Average, Laggard.
ESG scores do not constitute investment advice, they are to be considered only for information purposes. Created in collaboration with leading financial data analytics and software provider, FactSet, ESG scores offer a comprehensive view on a company’s shares or an index’s long-term performance and potential to generate returns.
Speaking about the ESG Impact Indices’ addition to the Group’s product array, CEO David Zruia said: “We know that our customers are increasingly interested in ESG investing and trading and want to better understand the level of sustainability that companies are meeting before making a decision.
With our innovative new ESG trading suite, they can now make informed decisions thanks to our user-friendly ESG scoring over a variety of CFDs on equities and our exclusive ESG Indices. Highly intuitive, easy to use and underpinned by reliable data, this new product suite puts a wealth of ESG information at the fingertips of Plus500 customers and is yet another example of our unique proprietary technology delivering the best user experience.”
Apart from the immediate benefits of diversification and growth that ESG Impact Index CFDs offer, the FTSE 250 Group’s decision to include them in its product suite is aligned with the current wave of “conscious consumerism”, which highlights the importance of environmental, social and governance policies to ensure companies’ adherence to ethical business practices.
As investors grow more socially conscious and eager to understand a company’s sustainability efforts before investing, its long-term success depends on the ability to create a viable ESG strategy – now more than ever.
In this context, with its ESG product suite, Plus500 enhances the decision-making process by providing in-depth, data-driven analytics on a cluster of companies’ long-term performance, allowing clients to identify promising opportunities across renewables, diversity and inclusion, poverty reduction and similar, increasingly popular sectors.
About Plus500
Plus500 is a global multi-asset fintech group operating proprietary technology-based trading platforms. Plus500 offers customers a range of trading products, including OTC (“Over-the-Counter” products, namely Contracts for Difference (CFDs)), share dealing, as well as futures and options on futures.
The Group retains operating licenses and is regulated in the United Kingdom, Australia, Cyprus, Israel, New Zealand, South Africa, Singapore, Seychelles, the United States, Estonia, Japan, and the UAE, and through its OTC product portfolio, offers more than 2,500 different underlying global financial instruments, comprising equities, indices, commodities, options, ETFs, foreign exchange and cryptocurrencies. Customers of the Group can trade its OTC products in more than 50 countries and 30 languages.
For further details, visit www.plus500.com
