Our ESG Index Solutions

Together with the sustainability experts of the Munich-based The Value Group, Index Intelligence has developed its own ESG index family, which is based on strict sustainability criteria according to European standards.

Every single stock in the new ESG index family was evaluated by The Value Group with regard to the strict European ESG criteria. Based on this data, Index Intelligence developed the new ESG index family XINT TVG ESG, whose sustainability criteria are transparent and comprehensible for each product group.

In the future, economic success will depend more than ever on the extent to which sustainable criteria are taken into account in addition to purely financial key figures. In order to make the resulting risks and opportunities measurable, The Value Group developed a proprietary sustainability rating (ESG rating) in a research project in 2008. The proprietary rating is based on common sustainability rating guidelines (e.g. Austrian Eco-label, FNG seal) and assesses a company’s impact on the environment, society, employees and supply chain, customers and corporate governance.

Building on this, the advantages of the Quality Rating were combined with the sustainability concept in 2011 and the pure ESG rating was further developed into the ESG PLUS rating with a superior risk-return profile through an expansion of the factors, optimised weightings and custom-fit filters. In this way, any disadvantages of the pure sustainability rating can even be overcompensated.

Since the finalisation of the quality rating, the ratings have been used in funds of various asset classes. Since 2015, selected indicators have been taken into account in the risk management of large pension funds and insurance companies.

While The Value Group evaluates the individual securities, Index Intelligence is responsible for the development of the universe and the technical and administrative implementation.