Few Words about the ESG Indices
All ESG Indices integrate elements of sustainability with market wide diversification. The indices consist of bonds of the Swiss Bond Index (SBI) issuers or of components of the Swiss Performance Index (SPI) which meet a minimum requirement regarding the ESG Impact Rating. Hence, investments in economic activities that are damaging to a substantial degree for the environment or the social system are not included in the diversification scope, regardless of the sector. Further, issuers or components which make less than 5% turnover in any of the following disputed sectors are considered: Adult Entertainment, Alcohol, Defense, Gambling, Genetic Engineering, Nuclear Energy, Coal, Oil Sands and Tobacco. Additionally, the SBI issuers or components of the SPI must not be involved in the production and distribution of controversial weapons, nor violat e any international convention. The ESG Investment Rules are in line with international standards, such as UN Global Compact. The components are weighted by their market capitalization.
The aim of the indices is to ensure the broadest possible market and therefore a sufficiently high diversification, thereby implementing sustainability to an extent that could be considered a general standard.