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Bank Sarasin Launches Sustainability Indices

Paul A Adams Geneva 15 October 2007

Bank Sarasin Launches Sustainability Indices

Deutsche Börse has launched two new indices with Bank Sarasin: DAXglobal Sarasin Sustainability Germany Index tracks the performance of companies with sustainable performance registered in Germany, while DAXglobal Sarasin Sustainability Switzerland Index tracks Swiss companies with sustainable performance. The index for Germany currently comprises 34 companies; the Swiss index 27. The German index comprises the 100 largest companies based on free-float market capitalisation, while the Swiss index is based on the 50 largest companies in terms of market capitalisation. Shares will only be considered if they have generated an average daily trading volume of at least €1 million or SFr1 million in the last six months. In a second step, these companies will be examined for their sustainability, as assessed by Bank Sarasin. The Sarasin sustainability matrix, which combines an industry rating and a company rating, will serve as the basis. The industry rating assesses industry-specific ecological and social effects on sustainable development. It not only considers the direct impacts of production of products and services, but also all indirect influences from producing commodities through preliminary products down to consumption. The company rating evaluates a company’s ecological and social performance compared to other companies in the same industry, based on sector-specific risks and challenges. Only those shares which meet the sustainability criteria qualify for inclusion. The composition of the index will be annually reviewed in July with shares equally weighted on a quarterly basis. Both indices are calculated in euros; the index for Switzerland is also calculated in Swiss francs. To maintain neutrality, Deutsche Börse AG is not included in the German index.

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