Swiss exchange SIX has launched new ESG indices of the Swiss equity and bond markets.
The new indices include two SPI ESG indices for equities based on the Swiss Performance Index. For bonds there are 20 new SBI ESG indices available, all based on the Swiss Bond Index. To be included in the indices, a company must have an ESG Impact Rating of at least a C+ and generate no more than five percent of its revenue in a critical sector. According to the index regulations, these critical sectors are adult entertainment, alcohol, armaments, gambling, genetic engineering, nuclear energy, coal, oil sands and tobacco. Index candidates also cannot appear in the exclusion list of the Swiss Association for Responsible Investments.
In developing its ESG indices, SIX has drawn on data sources including the independent Swiss sustainability rating agency Inrate.
Marion Leslie, Head Financial Information and member of SIX Executive Board, highlights: “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.”