Following the introduction of ESG indices in the Swiss equity and bond market, SIX has added further indices to the ESG offering to cover the large, mid and small-cap segments. These new equity indices are based on the same selection methods as the base index, the SPI ESG Index and the traditional size indices:

  • Identification of critical business activities
  • Violations of the United National Global Compact (UNGC)
  • Compatibility check with the list of the Swiss Association for Responsible Investment (SVVK)
  • ESG Rating
  • Classification based on free float market capitalization

For the ESG screening, SIX continues to use the expertise of Swiss ESG rating agency Inrate. Inrate focuses on direct and indirect impacts along the entire value chains and lifecycles of companies' products and services – from supply chain to production, use and disposal – and thereby going one step further than traditional ESG risk ratings.

The new ESG indices are aimed at institutional investors, who can now choose between traditional and ESG versions to reflect size segments. In addition to the SPI ESG Small, SPI ESG Mid and SPI ESG Large, combinations of small and mid-cap stocks are also covered by the SPI ESG Extra (SPI ESG excluding SMI stocks) and SPI ESG ex SLI.

Aside from the growing interest in ESG indices, the market is also evolving in terms of custom indices and customized ESG solutions. Dr. Diego Liechti, Head of Investments, Nest Collective Foundation commented: "We are very pleased to be able to work with SIX", and Dr. Christian Bahr, Head Index Services, Financial Information, SIX, added: "I would like to thank NEST Collective Foundation for their trust in the index solutions from SIX and look forward to this collaboration."

In line with demand, SIX has created customized indices that use the Swiss underlying universe on the equity and bond side in combination with customized ESG screening.

For further information on the ESG Size Indices from SIX, including their calculation methodology and composition rules, please click here. To access the list of all Index-Based Products of SIX, please click here.