Going by Globalance, Roche is right on track when it comes to climate protection. The experts of the Zurich private bank put the \u201cwarming potential\u201d of the pharmaceuticals group at 1.7 degrees. That means the company is acting in harmony with the 2-degree target anchored in the Paris Climate Agreement. Globalance\u2019s positive verdict on Roche also extends to what is called its footprint. The experts analysed how the group\u2019s investment impacts the economy, society and the environment. According to Globalance, the Basel company also achieves 100% of its sales in the mega-trends sector. \u201cRoche enables the greatest possible breadth of people to access its drugs, even in developing countries,\u201d the analysts explain. In its report it cites André Hoffmann, vice-chairman of Roche\u2019s board of directors: \u201cCompanies need to operate and grow in harmony with nature and society, not at their expense.\u201d<\/p>\n
Given the characteristics outlined above, it is only logical that Roche is among the members of the Globalance Low Carbon Index. Only companies whose warming potential is as low as possible, which leave a better than averagely positive footprint and which also realise a very high proportion of their sales in one of nine global mega-trends come into consideration for this new benchmark. Alongside these parameters, the selection process examines strict financial criteria. The index looks at both blue chip and growth stocks. Roche belongs to the former group: the company can score with a steady earnings trajectory, attractive dividends and comparatively low share price volatility, among other factors. For growth stocks, the key is to offer an expected increase in sales of more than 10% p.a. Alternatively, the consensus among analysts must be for projected annual growth of 15% or more in profits. It goes without saying that all shares must meet certain trading criteria. These include a market capitalisation of at least USDmn 100 and an average daily trading volume of around USD 100,000.<\/p>\n
Thirty companies have made it into the starting line-up of the Globalance Low Carbon Index. Alongside Roche there are five other groups from Europe. One of them is Legrand: the world's leading supplier of low-voltage products for housing and grid systems offers a warming potential of 1.6 degrees. It also ticks Globalance's boxes for the sustainability score (footprint) and the mega-trend share, while the French company is one of the growth stocks in the index. Although Asian companies are also found in the selection, Wall Street stocks clearly set the tone. Technology giants Alphabet and Microsoft are among the US representatives, as are utility company American Water Works.<\/p>\n
Globalance reweights the benchmark every three months. The index sponsor can also adjust the composition at the same time in response to news or recent listings. A tracker certificate from Leonteq enables investors to bring the Globalance Low Carbon Index into their portfolio. Quoted on the SIX Swiss Exchange, the open-end product comes with a management fee of 0.30% p.a. There is also an annual 0.85% charge for the calculation agent. In return for this small contribution, investors get a direct participation in a broadly diversified investment strategy that is actively managed with enormous expertise. What is more, all dividend payments of the index members are reinvested net in the underlying. This new issue is rounded off by a PostFinance AG guarantee. The guarantor currently has a Standard & Poor\u2019s rating of AA.<\/p>\n