GES Newsletter
December 1, 2011

Today NASDAQ OMX Group, Inc. and GES Investment Services present the list for the annual reconstitution of the OMX GES Sustainability Indexes. New criteria for water and climate significantly affect which Nordic companies are added or dropped.

The OMX GES Sustainability Indexes for the Nordic, Swedish and Finnish markets consist of the 50/40/40 leading listed companies in terms of sustainability. The index criteria are based upon international guidelines for environmental, social and governance (ESG) issues and support investor considerations to the UN Principles for Responsible Investment (PRI). The assessment is conducted by GES Investment Services, which rates the most traded companies on the NASDAQ OMX Nordic stock exchanges on their preparedness on ESG issues.

As of December 1, specific criteria for water and climate have been included, in order to meet client demand as these issues have evolved as central for sustainable development. The first results of this deepened analysis are presented today in the annual reconstitution lists for the OMX GES Sustainability Indexes.

“Many companies are rigorously working with the water and climate issues and competition has hardened. Within water, Astra Zeneca (Sweden), Stora Enso (Finland) and Novo Nordisk (Denmark) are among the companies leading the way. Top climate performers are Fortum (Finland) and DnB Nor (Norway),” concluded Flemming Hedén, Senior Research Analyst at GES Investment Services.

For some companies with competitive ESG performance, market-leading water and climate management became the tipping point for them to enter or remain on the Nordic index, e.g. Metso (Finland) and Trelleborg (Sweden).

At the same time, Telenor (Norway) was dropped from the Nordic index, despite good ESG performance, because of less competitiveness on water and climate.

“It was surprising to find that some companies operating in industries strongly linked to climate and/or water – like forestry, oil & gas, mining, construction, chemistry – are not prioritising these issues. Thereby they expose their owners to serious risks,” said Flemming Hedén.

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