Global Challenges Index
The Global Challenges Index (GCX) is a share index that was developed by the Hanover Stock Exchange in cooperation with the sustainability rating agency oekom research AG and launched on September 3, 2007. In the process of selecting the 50 stocks for the index, companies are rated largely on the basis of ecological and social criteria and criteria of responsible corporate management ( ESG criteria for ethical investment ).
composition
The GCX ( ISIN of the price index: DE000A0MEN33, ISIN of the performance index: DE000A0MEN25) comprises 50 companies that - according to the aim of the index developers - are making substantial and pioneering contributions to overcoming seven major global challenges that politics and society must face. They see these challenges as:
- Combating the causes and consequences of climate change
- Ensuring an adequate supply of drinking water
- sustainable use of forests
- Preservation of biodiversity
- Dealing with the population development
- Fight poverty
- Support of responsible management (governance) structures
Regionally, the GCX focuses on companies from Europe, Japan, Canada and the USA. Small and medium-sized companies make up a maximum of 10% of the market capitalization of the index, and each individual value may also have a maximum of 10% share of the market capitalization.
Half-yearly, in March and September, an audit is carried out and shifting the index composition also based on the sustainability criteria of the index.
Selection process
A two-stage selection process by oekom Research is intended to ensure that only companies are included in the index that have integrated the topic of sustainability into their business processes and at the same time actively address global challenges. In the first step, companies should be identified that take ecological and social criteria into account in their business processes. Only companies that meet the requirements of the rating are shortlisted for the index (absolute best-in-class approach). Companies that violate defined exclusion criteria are excluded in principle:
Business areas
- Atomic energy
- Biocides
- organochlorine mass products
- green genetic engineering
- armor
Business practices
- Environmental violations
- Violations of fundamental human rights and labor standards
- Violations in the areas of corruption and falsification of accounts
In the second step, those companies are selected that make an active and substantial contribution to dealing with global challenges as part of their core business and have a minimum capitalization of 100 million euros.
An independent advisory board advised the two initiators on the conception and further development of the index and actively supports the index. It includes representatives of the Federal Association of German Foundations, the Protestant and Catholic Church and the WWF .
Web links
Individual evidence
- ↑ Global Challenges Index - consistently investing sustainably. BÖAG Börsen AG and oekom research AG, November 2016, accessed on July 27, 2018 .