Siemens Gamesa Renewable Energy has been selected as a new member of the Global Challenges Index, which includes companies that are actively guiding their responsibility and have made substantial contributions to addressing the global commitments and challenges of the millennium: climate change, poverty, access to water, deforestation, biodiversity, population growth and good governance.
Decision was taken after a two-stage selection process to ensure that only companies which have integrated sustainability into their business processes and are simultaneously actively tackling the global challenges are included in the Index.
In the first step, the analysis company oekom research uses its Corporate Responsibility Ratings to identify which companies take account of environmental and social criteria in their business processes. Only companies which satisfy the rating’s stringent requirements will make the shortlist for selection for the Index (absolute best-in-class approach). In the second step, the analysts select those companies which make a substantial contribution to surmounting the global challenges and at the same time make use of new market opportunities.
A financial analysis ensures that the selected companies also satisfy the minimum requirements in terms of market capitalization. An independent advisory board advises oekom research on developing the concept, on defining the positive and exclusion criteria and on identifying suitable securities.
The composition of the Index is reviewed end of March and September each year. Companies which no longer satisfy the defined requirements will be replaced at these times.
In words of Markus Tacke, CEO Siemens Gamesa Renewable Energy: “We are proud of Siemens Gamesa Renewable Energy being included into the Global Challenges Index (GCX), a recognition to our business strategy keeping focused on the global challenges of our millennium. Our company is actively facing up to this responsibility and makes substantial, forward-looking contributions to surmounting the global challenges. We are sure that this lets sustainability-oriented investors comply their fiduciary duties and to protect the long-term value of their assets”.
About the Global Challenges Index:
The Global Challenges Index was created in November 2007. Composed of 50 companies, both large and small and medium capitalization, the analysis assesses the promotion of sustainable development within companies, through products and services and the search for future development opportunities for their businesses.
With a universe of close to 900 companies, the analysis agency oekom research selects leading companies by applying corporate responsibility criteria in their sector, as well as financial criteria such as the degree of capitalization.
The companies selected in the Global Challenges Index become attractive from an investment perspective, as they secure their business development opportunities while reducing hidden risks.