Ethical index first
Switzerland-based fund manager SAM Group has produced the world’s first index for ethical investments.
Switzerland-based fund manager SAM Group has produced the world’s first index for ethical investments.
Late last year, SAM formed a joint venture with the Dow Jones indexes to produce what it calls the Sustainable Performance Group index (SPG) based on stocks on the US stock exchange.
The index includes companies which add “environmental and social value”. Compa-nies listed in the index include international financial companies such as Credit Suisse and insurance group Skandia Försäkrings AB. Resources groups such as Suncor En-ergy, Canada Enbridge and technology-based companies like Fujitsu are also included in the index.
SAM, lead by partner and head of company research, Alois Flatz, says the index tracks the performance of leading sustainability-driven companies world-wide.
Speaking at the recent launch of Sydney’s Ethical Investment Association, Flatz said ethical investments continued to gain market share in the financial services industry.
“Traditional financial planners will be used to and include sustainability in their investments, and now that we have an index, passive investments can also be done,” he said.
“The financial services people are thinking about the changes in value. However, it takes some time to introduce new products in the market.”
Chairman of UK-based firm SustainAbility, John Elkington, says financial services groups are on the crest of a wave of ethical investments.
“We are at the early phases of a new wave. There will soon be a huge cultural change in process. However, [there is no doubt] the financial world has become more involved,” Elkington says.
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