SIX has announced the launch of the first ESG indices for Swiss bond and equity markets.
Developing 22 indices, SIX took data from sources such as sustainability rating agency Inrate which considers the positive and negative impacts of companies’ effects on the environment and society.
The launch covers two SPI ESG indices for equities based on the Swiss Performance Index (SPI), and 20 SBI ESG indices based on the Swiss Bond Index.
To be included in the new indices, companies must not appear in the Swiss Association for Responsible Investment exclusion list, must have an ESG rating of at least a C+ and derive no more than 5% of revenues from ‘critical’ sectors.
SIX’s indices define these sectors as adult entertainment, alcohol, armaments, gambling, genetic engineering, nuclear energy, coal, oil sands and tobacco.
Marion Leslie, head of financial information and member of SIX Executive Board, commented: "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."
Christoph Müller, CEO of Inrate, added: "Investors integrate ESG into their investments in order to incorporate general concerns and values of society and to expand the data basis for investment decisions.
“This requires a high degree of comparability, systematics and, if possible, quantification. Inrate wants to take the leading role in this.”
Last month, SIX announced a partnership with index and ETF data provider Ultumus to create a solution that provides a single file of OFAC sanctioned securities across global ETFs.