Swiss Performance Index (SPI) as a Basis
To date, there has been no recognized ESG equity benchmark for the Swiss equity market. SIX has therefore decided to change this. The Swiss Performance Index (SPI) is the basis for the new ESG indices.
The SPI ESG indices allow investments in Swiss stocks of companies that have a standardized and well-founded sustainability profile. In this way, SIX enables the promotion of companies that operate sustainably and thus a long-term, more sustainable orientation of the Swiss economy. As part of the general trend towards sustainable investments, SIX is meeting this market need with the new indices. The companies in the SPI ESG index are evaluated with regard to a defined number of ethical, social and measurable corporate governance criteria. These criteria relate to all relevant entrepreneurial activities. The new indices offer a standardized way to invest in Swiss stock corporations in accordance with ESG criteria.
Available since 1 February 2021
Key Product Information
Performance
SPI ESG
The index components of the SPI ESG and the SPI ESG Weighted are selected the same way, using the index methodology procedure. Therefore, both indices have the same components and include companies that achieve a high sustainability level and are committed to sustainable development.
The SPI ESG Total Return measures the performance of Swiss equities based on the ESG ratings provided by Inrate. The index consists of those components of the Swiss Performance Index (SPI) that have a rating of at least C+ on a scale of A+ to D– and less than 5% turnover in controversial sectors. The components are weighted according to their free-float market capitalization.
SPI ESG Weighted
The SPI ESG Weighted Price measures the performance of Swiss equities based on an ESG rating metric provided by Inrate. The SPI ESG Weighted Index additionally takes the ESG rating into account when weighting the components. While the SPI ESG Index weights the components exclusively according to free-float market capitalization, the SPI ESG Weighted Index additionally underweights or overweight’s the components according to their rating.
The factor for underweighting or overweighting is derived directly from the available rating. The weight for a component with a rating of C+ is halved and the weight of the component with the best rating is doubled. The components in between receive a capping factor according to their rating, which is derived linearly between 0.5 and 2.
SPI ESG Select
The SPI ESG Select Index measures the development of Swiss equities based on ESG Ratings provided by Inrate. At the index review date the components are selected for the index until it contains half the number of components of SPI. The components are selected depending on their ESG Rating and their market capitalization. Additionally they must make less than 5% turnover in disputed sectors.
The index actively controls component weights to reduce cluster risks. Therefore a UCITS capping is applied to control if two components exceed a weight of 20%. The index has been launched as per March 29, 2021.