Global Compact 100 Index - Frequently Asked Questions

Below is a list frequently asked questions regarding the Global Compact 100 index. If your question is not answered here or you would like additional information, please contact Melissa Chase, Marketing Specialist.

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Who is calculating the index and index performance?

The Global Compact 100 is being calculated on a real-time basis by S&P Dow Jones Indices and is available on Bloomberg. The Bloomberg codes for the total return index denominated in US dollars and Euros is GC100TR and GC100TRE, respectively.

Can the index be licensed?

The Global Compact 100 can be licensed for analytical purposes, benchmarking and to produce financial products. Please contact Sustainalytics for more information.

Are there investable products based on the index?

The index has caught the attention of capital markets globally, and it’s probable that third-party investment companies will look to create investable products based on the Global Compact 100.

Is the Global Compact 100 a real-time index?

Yes, the Global Compact 100 is being calculated on a real-time basis (every 15 seconds) by S&P Dow Jones Indices and is available on Bloomberg. The Bloomberg codes for the total return index denominated in US dollars and Euros is GC100TR and GC100TRE, respectively.

What companies are eligible for the index?

Companies are eligible for the index if they or their parent company have been Global Compact signatories for a minimum of one year, they are publicly listed, and they fall within the research universe of Sustainalytics, who provided the research for the index. As well, they must pass a minimum financial screen that requires positive EBIT on average for the three years preceding the index annual review. In the case that a company is already a constituent of the index, it will only be removed if there are two consecutive years of negative three-year average EBIT figures.

How often will the index constituents change?

The constituents of the index are reviewed on an annual basis in September. Changes in the index will reflect changes in the universe of publicly listed Global Compact signatories, market developments and company developments.

What is the expected index turnover at the annual review?

The turnover of the index will not exceed 10 constituents or 10% of the free-float market capitalization of the index. 

Can you please explain the purpose of the financial screen?

The purpose of the financial screen was to eliminate the small part of the universe that was not generating positive earnings (EBIT) in the three years leading up to the index selection. Less than half of one per cent of companies became ineligible for inclusion based on this criteria.

What is the constituent selection process?

Constituents are chosen for the Index with the three goals of sector representation (free-float market capitalization weights) within a range of the key, well-known global indexes; geographic representation within a range of the key, well-known global indexes; and to choose companies that have strong practices and performance in adhering to the principles of the UN Global Compact around management of human rights, labour rights, the environment and anti-corruption. Among the indicators used in the selection of the constituents were the company’s level of reporting in relations to the Global Compact’s required annual Communication on Progress and whether or not the company’s chief executive submitted its annual letter of support for the UN Global Compact and its principles.

How was the backtesting process conducted?

The index was constructed for all three years starting with the selection of the 2010 constituents using the pre-established methodology and the information available at the time (universe of signatories, EBIT for the preceding three years and policies and practices for companies that Sustainalytics covered in September 2010, September 2011 and September 2012). The performance for the Index was then calculated over the three-year period with the constituent changes taking place on the 10th of September in 2011 and 2012.

About the UN Global Compact

The United Nations Global Compact is a call to companies everywhere to voluntarily align their operations and strategies with ten universally accepted principles in the areas of human rights, labour, environment and anti-corruption, and to take action in support of UN goals and issues. The UN Global Compact is a leadership platform for the development, implementation and disclosure of responsible corporate policies and practices. Launched in 2000, it is largest corporate sustainability initiative in the world, with over 12,000 signatories – of which 8,000 are companies – based in 145 countries. www.unglobalcompact.org

About Sustainalytics

Sustainalytics is an independent ESG research and analysis firm supporting investors around the world with the development and implementation of responsible investment strategies. The firm partners with institutional investors who integrate environmental, social and governance information and assessments into their investment decisions.

Headquartered in Amsterdam, Sustainalytics has offices in Boston, Bucharest, Frankfurt, London, New York, Paris, Singapore, Timisoara and Toronto, and representatives in Bogotá, Brussels, Copenhagen and Washington, D.C. The firm has 180 staff members, including more than 100 analysts with varied multidisciplinary expertise and thorough understanding of more than 40 industries. In 2012 and 2013, Sustainalytics was voted best independent sustainable and responsible investment research firm in the Thomson Reuters Extel’s IRRI survey. www.sustainalytics.com

Additional Global Compact 100 information: