A new ESG Index Futures Contract Based on the CNI ESG 300 Index

Pengyuan Tang (), Mucen Ni () and Tangmingjie Tan ()
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Pengyuan Tang: Shanghai University of International Business and Economics, Finance Management School
Mucen Ni: Shanghai University of International Business and Economics, Finance Management School
Tangmingjie Tan: Shanghai University of International Business and Economics, Finance Management School

A chapter in Proceedings of the 2023 International Conference on Management Innovation and Economy Development (MIED 2023), 2024, pp 335-343 from Springer

Abstract: Abstract With the popularity and importance of ESG (environmental, social, and governance) concept in the global scope, more and more investors are paying attention to the ESG performance of enterprises to evaluate their long-term investment value and risk. However, there is a lack of ESG-related derivatives in China, which makes it difficult for ESG investors to hedge the risks brought by market fluctuations and information disclosure. To fill this gap, this paper refers to the CSI 300 index and CNI ESG 300 index to design a CNI ESG 300 index futures contract, aiming to provide an effective risk management tool for ESG investors. This paper first introduces the origin and development of ESG concept, as well as the advantages and challenges of ESG investment; then analyzes the current situation and demand of ESG investment in China, as well as the existing problems and difficulties; then elaborates the design idea and method of CNI ESG 300 index futures contract, as well as its main parameters and characteristics; finally discusses the implementation effect and significance of the contract, as well as the possible risks and suggestions. This paper aims to provide a useful attempt and reference for the design of ESG derivatives in China.

Keywords: ESG; Futures; Green Finance; Derivatives; Risk Management (search for similar items in EconPapers)
Date: 2024
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DOI: 10.2991/978-94-6463-260-6_44

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