In co-operation with Bank Sarasin, Deutsche Börse has launched two new indices tracking the performance of companies screened for their social and environmental sustainability in Germ
In co-operation with Bank Sarasin, Deutsche Börse has launched two new indices tracking the performance of companies screened for their social and environmental sustainability in Germany and Switzerland.
The DAXglobal Sarasin Sustainability Germany Index tracks the performance of 34 companies that meet the sustainability criteria registered in Germany, while the DAXglobal Sarasin Sustainability Switzerland Index tracks 27 Swiss companies that meet the same standards.
The universe for the German index comprises the 100 largest companies based on free-float market capitalisation, while the Swiss index is based on the 50 largest companies. Equities will only be considered if they have generated an average daily trading volume of at least a million euros or Swiss francs over the previous six months.
In a second step these companies will be examined for their sustainability and evaluated by Sarasin. The Sarasin Sustainability matrix, which combines an industry rating and a company rating, will serve as the basis for the indices; only those equities that meet the sustainability criteria qualify for inclusion.
The industry rating assesses industry-specific ecological and social effects on sustainable development. It considers not only the direct impacts of production of products and services, but also indirect influences from use of commodities through preliminary products to consumption. The company rating evaluates a firm’s ecological and social performance compared with other companies in the same industry, based on sector-specific criteria.
The composition of the index will be reviewed annually in July, with shares equally weighted and rebalanced on a quarterly basis. Both indices are calculated in euros, with the index for Switzerland is also calculated in Swiss francs. To avoid conflicts of interest, Deutsche Börse is not included in the German index, although it is one of the top 100 equities by market capitalisation.
‘In expanding our DAXglobal family, we have for the first time integrated the Sarasin sustainability research into strictly rule-based and transparent indices, giving investors opportunities to invest in sustainable companies,’ says Dr Hartmut Graf, head of issuer data and analytics at Deutsche Börse.
‘The strict criteria Bank Sarasin uses for its analyses, and its vast experience in sustainable investments make Sarasin, one of the global pioneers and market leaders [in the field], an ideal partner.’
Deutsche Börse is a leading international index provider, with its market data and analytics department calculating and publishing a total of more than 2,100 indices. The business also compiles, distributes, and markets independent capital market information such as price data, trading statistics and back office information for banks and financial institutions.
Founded in 1841, Bank Sarasin & Cie has more than 1,100 employees and is based in Basle, with domestic subsidiaries in Zurich, Geneva and Lugano as well as offices in Dubai, Guernsey, Hong Kong, London, Munich, Paris and Singapore.
