SWITZERLAND: SIX Launches First ESG Indices for General Swiss Bond and Equity Markets

Thursday February 11 2021

On 10^th February 2021, the Swiss Stock Exchange (SIX) announced that it has launched new ESG indices in the Swiss equity and bond markets. These cover the sustainability criteria of environment, social/society and governance.

Recent years have seen a marked rise in demand for sustainable investments that take ESG criteria into account. ESG criteria provide information on how companies factor in environmental and social aspects, as well as a sustainable approach to corporate governance. In developing its ESG indices, SIX has drawn on data sources including 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.

SIX now offers two SPI ESG indices for equities based on the Swiss Performance Index (SPI). For bonds, there are 20 new SBI ESG indices available, all based on the Swiss Bond Index (SBI). 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 per cent of its revenue in a critical sector.

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