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Ethibel Sets New Benchmark For Sustainable Investment Following Launch Of Second Quality Label
Ethibel Sets New Benchmark For Sustainable Investment Following Launch Of Second Quality Label
Published 02-06-05
Submitted by Ethibel Group
The Pioneer label currently counts a total of 198 pioneering companies with outstanding performance in terms of social and environmental sustainability. However, since company shares of these sustainability pioneers are not always readily available, certain types of investment funds are limited in their possibilities of spreading risks. The new Ethibel Excellence label responds to this demand, by extending also to companies that clearly perform better than sector-average in terms of sustainability.
Marc Bontemps, CEO of Ethibel: "With the introduction of Ethibel Excellence we are responding to a growing demand from institutional investors, fund and asset managers who want to see investments that combine financial returns with positive social and environmental impacts. Ethibel Excellence offers a wider and more balanced spread of risks, making it a new benchmark for sustainable investments."
Ethibel - a recognised quality label
Ethibel's quality labels for sustainable investment funds are registered and recognised by all countries of the European Union. They are a guarantee for investors that investment funds are composed exclusively of companies selected on the basis of Ethibel's comprehensive evaluation model. Funds are limited to those shares and bonds included in Ethibel's investment register.
Italy's Banca Etica, third largest player in the Italian SRI (Socially Responsible Investment) market, opted for Ethibel-based SRI funds in 2003. "Both our private and institutional investors are motivated to invest consistently with their values and beliefs. The Ethibel Pioneer label is a guarantee for us that we are investing in companies that are actually pioneering the sustainability sector. For our clients this is an essential quality label", comments Luca Mattiazzi, CEO of Etica sgr.
Wilfried Remans of Fortis Bank in Belgium agrees with Ethibel's high standing: "We have made a conscious choice for the Ethibel Pioneer label for our sustainable investment fund, AlterVision Balance Europe. It proves our commitment to the best possible criteria when selecting companies and evaluating their performance in terms of sustainability."
This is confirmed by Jan Leroy, Manager PAM Equities Europe Ethical at Petercam. "The most convincing argument in favour of ethical and sustainable investment is the better long-term performance of these companies compared to conventional stock indices that apply no particular ethical criteria."
Ethibel indices set benchmark for sustainable investment
Ethibel furthermore maintains two sustainability indices reflecting the characteristics of its two quality labels: Pioneer and Excellence. The Ethibel Pioneer Index, first launched in June 2002, was joined earlier this year by the Ethibel Excellence Index. Calculations by Standard & Poor's and Ethibel attest to the strong performance of both sustainability indices.
The Ethibel Pioneer Index has over the past two years (January 2003 to December 2004) shown strong performance and volatility figures when compared with Standard & Poor's own indices. Ethibel's European index, the Pioneer Europe Index, has seen a total increase by 30 percent in these two years. In 2004, it effectively outperformed Standard & Poor's S&P Europe 350 Index. Over the same two-year period Ethibel's Global Pioneer Index has grown by nearly 50 percent, closely trailing the S&P Global 1200 Index. Moreover, Ethibel's Pioneer Index counters common perceptions of smaller investment bases automatically leading to higher volatility. Ethibel's volatility figures have been equivalent to those of Standard & Poor's, despite the relatively limited number of 198 select companies included in the Pioneer Index.
In back-tracking, and with necessary prudence when interpreting figures, we nevertheless can state that the Ethibel Excellence Index shows a similar performance for the period January 2003 to December 2004. The Ethibel Excellence Global Index has seen an increase by more than 50 percent during this period and - with equal volatility - has outperformed the S&P Global 1200 Index. This is matched by good performance of the Ethibel Excellence Europe Index in the same two-year period, outperforming the corresponding S&P Europe 350 Index.
The investment universe of the Ethibel Excellence Index is broader and includes all sector leaders of the Pioneer compartment as well as companies that clearly perform better than sector average in terms of sustainability. The index currently contains 278 companies from all sectors in Europe, North America, Japan/Pacific region and will be expanded in the future.
Ethibel's unique assessment model
Ethibel applies a total of 106 different criteria in the selection of campanies for inclusion in its investment register that forms the basis for both its quality labels as well as its investment indices. Ethibel's strict research and assessment model is caracterised by a strong stake-holder involvement and dialogue with all parties concerned. It is the result of 12 years of immediate SRI research experience.
The 'triple bottom line' or 'People-Planet-Profit' approach is key to Ethibel's assessment methodology. Companies are screened on all areas of corporate social responsibility: internal and external social policy, environmental policy and ethical economic policy. Companies are assessed in relation to their sectoral or regional competitors and the investigation extends to active communication with all the company's stakeholders, including the company itself. Ethibel continues to exclude companies involved in weapons, nuclear energy, gambling and tobacco and remains critical of companies that oppose union activities, employ child labour, are non-transparent or violate environmental legislation, to name but a few of its key criteria.
About Ethibel
The not-for-profit organisation Ethibel is an independent research agency and consultancy for socially and environmentally responsible investments. Its main activities consist in the social, environmental and ethical screening of companies and in the promotion of ethical financial products to the general public. Ethibel advises banks and brokers offering social-ethical and "green" financial products and accredits "sustainable investment funds" with its own label.
For the calculation of its indices, Ethibel relies on the expertise of Standard & Poor's, the world's foremost provider of independent credit ratings, indices, risk evaluation, investment research, data and valuations. Performance data for Ethibel's sustainability indices are published in the financial sections of selected media.
Note to editors:
For general information, please refer to Ethibel's website www.ethibel.org. For any further questions concerning Ethibel's sustainability indices, please contact Marc Bontemps, CEO of Ethibel, on +32 2 2061111 or +32 475 611697 or marc.bontemps@ethibel.org.
Belgian press contact: Worldcom Europe Brussels, Hans Karperien, tel.: +32 2 2806061 or e-mail: hans@web-pr.be.
