The Global Challenges Index is compiled in two stages.

In the first stage, oekom research uses its Corporate Responsibility Rating to check the conformance to social and environmental standards of the companies which form part of the oekom universe.
Only companies which meet the stringent requirements are given “prime” status by oekom research. The companies with the best Corporate Responsibility Rating in their industry qualify for the Index under this absolute best-in-class approach. In addition, all the companies are analysed to see whether they contravene the defined exclusion criteria. Companies which do are not accepted into the Index. This first stage sees the number of companies which are potentially suitable for the Index reduced from 900 to around 250.

In a second stage, oekom research identifies those companies which have made substantial contributions to meeting the global challenges and in doing so have opened up for themselves the opportunities described. A financial analysis ensures that the selected companies also satisfy the minimum requirements in terms of market capitalisation.

An independent advisory board advises oekom research on developing the concept, on defining the positive and exclusion criteria and on identifying suitable securities.

The Index is composed of 50 companies. We aim for a mix of globally active large companies, as well as small and medium-sized companies which contribute to sustainable development primarily through their product and service range (“potentials”). The companies are weighted according to market capitalisation, and the potentials can have a share of around 10% of the total market capitalisation of the Index.

Individual securities can have a weighting of max. 10% of the Index. Geographically, the Index focuses on companies from Europe and the G7 countries.
oekom research monitors the universe constantly. The composition of the Index is reviewed end of March and September each year. Companies which no longer satisfy the defined requirements will be replaced at these times.