SIX has drawn on data sources including the independent Swiss sustainability rating agency Inrate to offer two ESG indices for equities based on the Swiss Performance Index (SPI) and 20 ESG indices for bonds based on the Swiss Bond Index (SBI). Inrate has developed an ESG Impact Rating solution that measures positive and negative impacts of companies on the environment and society.
To be included in the indices, a company must have an ESG Impact Rating of at least C+ and generate no more than 5% of its revenue in a critical sector including adult entertainment, alcohol, armaments, gambling, genetic engineering, nuclear energy, coal, oil sands and tobacco. Also, index candidates cannot appear in the exclusion list of the Swiss Association for Responsible Investments.
Marion Leslie, head of financial information and a member of the SIX executive board, says: “SIX is introducing ESG indices with broad coverage of Swiss equities and bonds for the first time. In doing so, we are creating new opportunities for investors to target their investments with sustainable criteria. This is in line with our strategy to consistently evolve our data offering to provide solutions for future market needs.”