A two-stage selection process ensures that only companies which have integrated sustainability into their business processes and are simultaneously actively tackling the global challenges are included in the Index:
In the first step, oekom research uses its Corporate Responsibility Ratings to identify which companies take particular account of environmental and social criteria in their business processes. Only companies which satisfy the rating’s stringent requirements will make the shortlist for selection for the Index (absolute best-in-class approach). Companies which violate specified exclusionary criteria (see right) are excluded on principle.
In the second step, oekom research selects those companies which make a substantial contribution to surmounting the global challenges and at the same time make use of new market opportunities, e.g.
- ensuring the long-term availability of resources, for example through sustainable forestry and fisheries management,
- reducing market-price risks, for example through increasing energy efficiency and ensuring access to raw materials,
- preserving competitiveness through technical innovation, for example in the area of renewable energies,
- opening up new markets, for example in the area of microfinance,
- maintaining and improving their social acceptance and reputation.
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 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.