Deutsche Börse Group’s portfolio of sustainable products
Deutsche Börse’s products and services offer investors, issuers and other market participants a marketplace or the infrastructure and support to engage in financial transactions or offer financial instruments.
The company’s portfolio of sustainable investment products has also grown considerably over the previous years. Deutsche Börse offers a wide range of indices, in particular, that are used by investors as a basis for sustainable investments.
Deutsche Börse’s sustainable index products experienced above-average growth in 2009. The DAXglobal® Sarasin Sustainability Index for Germany, for example, outperformed the DAX® by more than 7 percent. Overall, this sustainability index even grew by over 31 percent in the year under review. In selecting companies for the index, the company uses the recognised Sarasin Sustainability Matrix developed by the Swiss Bank Sarasin, a specialist in the field of sustainability.
Other sustainability indices include the ÖkoDAX® and the DAXglobal Alternative Energy indices. Moreover, we offer so-called customised indices. We calculate, for example, the Photovoltaik Global 30 index, a customised index for companies in the solar energy sector, on behalf of the Royal Bank of Scotland. Our role here is that of an independent service provider that monitors whether index rules are observed and calculates and operates the index. In this way, we can enable our customers to issue sustainable investment products on this index themselves.
Our sustainable indices are listed below:
ÖkoDAX currently reflects the performance of the ten most liquid companies from the Prime IG Renewable Energy index which represents the renewable energy industry sector. The companies are selected from the sector of renewable energy based on the highest market capitalisation and included in the index portfolio with equal weighting factors. The ordinary chaining and the actualisation of the index composition take place quarterly.
DAXglobal Alternative Energy
With the addition of the DAXglobal Alternative Energy index, Deutsche Börse has added the alternative energy sector to its comparatively new DAXglobal family. This first sector index concept is ideal to venture into the highly dynamic market of the alternative energies sector on a global level. Companies which are included into the index have to generate the greatest proportion of their turnover in one of these five sub-sectors in the field of “alternative energies”: natural gas, wind, solar, ethanol, and geothermal power/hybrid propulsion/batteries.
DAXglobal Sarasin Sustainability Germany
Companies which pursue a sustainable strategy secure their market position in future and at the same time take into account the consequences following the decisions they make today. This includes not only the respect for the environment but also the economic stability, good conditions for employees, suppliers and customers. Today, it is common knowledge that there is a positive correlation of a sustainable management within the framework of a sustainability triangle of economy, ecology and social responsibility.
In addition to the financial analysis, the environmental and social impact analyses provide an essential basis for decision-making in the field of sustainable investment.
Bank Sarasin therefore developed a two-dimensional assessment system: The Sarasin Sustainability matrix based on these two major components:
Photovoltaik Global 30 Index
Photovoltaik Global 30 Index comprises the 30 largest and most liquid companies of the solar power sector. The index is calculated and disseminated every 60 seconds between 9.00 a.m. and 10.15 p.m. CET as price and performance index.
Credit Suisse Global Alternative Energy Index
Credit Suisse Global Alternative Energy Index provides a tradable indicator that reflects the “alternative energy” market segment.