Ethos has launched two new indices dedicated to sustainability, an equity index and a bond index, which are both calculated by SIX. The aim of these two indices is to use a sustainability filter to eliminate companies/issuers whose ESG practices are insufficient. This way, Ethos aims to encourage investment and financing in companies or issuers whose non-financial performance is more sustainable than that of their peers.
The first index, the Swiss Responsible Equity Index (SREI), was launched on 4 January 2024. It is made up of companies included in the SPI whose ESG rating provided by Ethos is A+, A- or B+ (on a scale from A+ to C). A company's sustainability performance is assessed according to its exposure to ESG risks and the way it manages them, considering its governance, sustainability strategy (transparency, clarity and consistency of objectives, ambition and management skills) and non-financial reporting.
This analysis is complemented by exclusion criteria. All companies whose products are not compatible with the values set out in the Charter of the Ethos Foundation or whose behavior does not comply with the fundamental principles of ethics and sustainable development (as defined in the Ethos Principles for SRI) are automatically excluded from the SREI.
The second index, the Swiss Responsible Bond Index (SRBI), was launched on 2 April 2024. It consists solely of the components of the benchmark Swiss Bond Index AAA-BBB (corporate, sovereign or supranational bonds) with an ESG rating of at least A+, A- or B+ (on a scale from A+ to C). In addition to the exclusions linked to products and issuer behavior, which are the same as for the SREI, instruments identified by SIX as asset-backed securities are also excluded from the SRBI.
Vincent Kaufmann, CEO Ethos: "In 2017, together with SIX, we launched the first Swiss index dedicated to good corporate governance. Today, we are taking a new step forward with the aim of enabling investors to assess the ESG performance of their investments in relation to that of a benchmark index."
Dr. Christian Bahr, Head Index Services, Financial Information, at SIX: "We are proud to be Ethos' trusted partner for the calculation of these indices, which reflect the values and principles of the Foundation. This collaboration demonstrates the expertise of SIX to create custom index solutions for its clients, based on their specific needs and objectives."
While the SREI and SRBI are administered by Ethos, which is responsible for collecting the data and determining the ESG ratings and exclusion criteria, SIX calculates them using its own systems and according to market standards.
On 26 March 2024, BCV, which has been an Ethos partner since 2020, launched the BCV Swiss Responsible Equity Index, an equity fund that replicates the SREI index.
Bruno Férolles, Head of Asset Management at BCV: "This new fund completes BCV's range of index-linked products dedicated to Swiss equities. It is fully in line with the bank's approach to socially responsible investment. We are also delighted that Ethos has launched a sustainable bond index. These developments strengthen the partnership between BCV and Ethos.”