ESG in SPI Extra: Sustainability in the Swiss Small-Cap Universe

ESG is particularly important in the small- and mid-cap segment. Many small and mid-sized companies attract less attention from analysts and the public than large blue-chip firms. Consequently, differences in governance structures, transparency, and issuance profiles are often more pronounced. This presents investors with the opportunity to measurably improve a portfolio’s sustainability quality through targeted selection.

One example of such an approach is the OLZ Equity Switzerland Small & Mid Caps, which invests in the SPI Extra universe and systematically integrates ESG into the investment process. The impact of this approach is evident in both ESG ratings and concrete climate metrics.

Making ESG measurable: MSCI ratings and CO₂ metrics

A key benchmark is the MSCI ESG Score, which assesses how well companies manage material environmental, social, and governance risks. The assessment is industry-specific, allowing companies to be compared within their respective sectors. The score is based on exposure to ESG risks as well as the quality of risk management.

Compared to the SPI Extra, the OLZ portfolio has a higher average ESG score (7.7 versus 7.4). This suggests that, on average, the companies included in the fund are better positioned to address ESG-related issues than the overall market.

Climate metrics are another key component of the analysis. These are based on Scope 1 and Scope 2 emissions. Scope 1 encompasses direct emissions from the company’s own sources, while Scope 2 reflects indirect emissions from purchased energy such as electricity or heat. These two categories are considered well-standardized and comparable.

The CO₂ footprint is measured as an emissions-weighted metric relative to capital employed, typically based on enterprise value including cash (EVIC). It shows how many emissions are attributable to each unit of invested capital. Here, the OLZ portfolio stands at 3.5 compared to 6.7 in the SPI Extra (Scope 1 & 2). This is a clear indication of lower CO₂ exposure per invested franc.

In addition, CO₂ intensity measures emissions in relation to economic performance, usually as tons of CO₂ per revenue. This metric provides information on how efficiently companies operate in terms of their emissions. Here, too, a clear difference emerges: 10.6 in the OLZ portfolio versus 16.8 in the index, indicating higher operational CO₂ efficiency among the selected companies.

Clear Exclusions and Active Shareholder Engagement

In addition to quantitative assessment, clear qualitative criteria are also applied. Companies are excluded if they violate defined sustainability standards or operate in controversial business sectors. These include, among others, companies on the SVVK-ASIR list as well as companies with significant revenue in sectors such as controversial weapons, oil sands, or thermal coal.

These exclusions ensure that certain business models are consistently avoided and structural ESG risks are reduced.

Furthermore, sustainability is also implemented through the active exercise of shareholder rights. Voting rights in the fund are exercised in accordance with the ISS SRI Policy, with a particular focus on issues such as climate strategies, transparency, compensation systems, and governance structures.

Specifically, this commitment is also reflected in voting patterns: In 24.6% of all cases in 2025, votes were cast against management, primarily due to governance issues. These typically involve very specific matters, such as the appropriateness of compensation systems, the independence of the board of directors, or the structure of management incentive programs. In some cases, it also concerns the structure of shareholder rights, for example regarding capital measures or the composition of the board.

This underscores that ESG is implemented in the fund not only through selection but also through active shareholder engagement. Always with the goal of encouraging companies to adopt better standards over the long term.

Conclusion

The SPI Extra universe not only offers access to a broad and dynamic segment of the Swiss equity market but also provides an attractive foundation for the systematic integration of ESG criteria. The comparison shows that targeted selection can yield both qualitative and quantitative improvements. These range from a higher MSCI ESG score to significantly lower CO₂ exposure and intensity.

This makes it clear: sustainability in the Swiss small- and mid-cap segment is not only achievable but also measurable. ESG thus becomes an integral part of a structured investment process.