In December 2019, the Ethos Foundation launches a stock exchange index dedicated to corporate governance at Swiss companies. In collaboration with the Swiss Stock Exchange (SIX), Ethos publishes the "Ethos Swiss Corporate Governance Index Large" (ESCGI Large) which takes into account the main corporate governance best practice criteria in order to define the weight of the different constituents. The index allows investors to reduce the weight of companies that entail a corporate governance risk.
The index objectives aim to:
- Reduce the corporate governance risks by underweighting or excluding companies that do not apply best governance practices
- Reduce the carbon impact of the index by underweighting companies with significant carbon emissions
- Avoid overweighting companies that are under a serious controversy
- Avoid overweighting companies that have a weight exceeding 15% in SPI Large
- Overweight companies that do not fall into one of the above categories.
ESCGI indices on SIX