Sustainable Investments Are More Than a Trend
SIX’s objective is to establish robust, sustainable, and independent benchmarks for the Swiss bond and equity markets. These benchmarks serve as reliable reference points for investors. The underlying principle is that economic prosperity should not come at the expense of future generations. However, defining what constitutes a sustainable company isn’t straightforward. In practice, sustainable investments are assessed using various criteria. One widely recognized framework is the “ESG” criteria, which stands for Environment, Social, and Governance. These criteria evaluate how well companies integrate ecological and social considerations into their business practices.
In developing the indices, SIX has drawn on data from the independent Swiss sustainability rating agency Inrate. The ESG Impact Rating developed by Inrate measures the positive and negative impacts of companies on the environment and society.
Index Methodology
The components of an index are selected from its respective universe. This selection process applies to both equity and bond indices. The Swiss Bond Index (SBI) serves as the universe for the ESG Bond Indices, while the Swiss Performance Index (SPI) serves as the universe for most ESG Equity Indices.
Several factors influence the selection of the corresponding ESG index:
- Rating: The ESG Impact Ratings from Inrate span twelve levels from D- to A+
- Critical sectors: Inrate collects sales data for numerous critical sectors
- United Nations Global Compact (UNGC) assessment: Evaluated by Inrate
- Findings from the Swiss Association for Responsible Investments (SVVK): Incorporated by SIX
To qualify for inclusion in the index, companies must have an ESG Impact Rating of at least C+. Additionally, they face revenue limits in specfici sectors: adult entertainment, alcohol, armaments, gambling, genetic engineering, nuclear energy, coal, oil sands, and tobacco. Candidates must also meet the UNGC assessment criteria and avoid the SVVK’s exclusion list.
How You Will Benefit
Strong Partner
SIX uses the rating expertise of Inrate for the ESG index methodology.
Efficient Instrument
The ESG indices are an efficient tool for rapid assessment for the Swiss capital market.
Independent and Transparent
The indices of SIX are rule-based and calculated independently. SIX thus ensures transparency and independence.
High Level of Trust
Thanks to the strong index brands of SIX, the ESG indices enjoy a high level of market acceptance.
UNGC Compliance
Index components are (amongst other factors) selected based on a United Nations Global Compact (UNGC) assessment.
Discover Our Indices
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ESG Equity Indices
The SIX ESG Equity Indices facilitate investments in Swiss equities that are managed sustainably.
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ESG Bond Indices
The SIX ESG Bond Indices simplify sustainable investing in the Swiss bond market.
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SPI Gender Equality Index
The SPI Gender Equality Index selects components from the largest equities based on the ratio of women and men in the board of directors and management board.
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SPI ESG Multi/Single Premia Indices
The SPI ESG Multi Premia Index family comprises seven SPI ESG Single Premia Indices and one SPI ESG Multi Premia Index.
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SIX provides constituent level data including weights, selection lists, index preview and review information to allow you to track index changes and corporate actions for all index participants.
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