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Ecological and Social Efficiency Index - EASEY X

Basing on a model and indicators for valuing sustainability of companies quoted at the prime market of the Vienna stock exchange methods and instruments have been developed to analyse their performance. By the connecting step company data have been collected and analysed by four different methods (SPSS, EVA, SVA, MCA Outranking). On a 100 scores scale five companies exceeded barely the mark 70, 6 rank between 60 and 69 further 5 between 52 and 59. The aim is to launch a sustainability EASEY index 2004 or beginning 2005.

Short Description

Status

completed

Summary

Motivation

The motivation for developing a sustainability index for the use of the Vienna stock exchange is based on the results of the foregoing project - EASEY indicators and model. Two surveys (Gallup 06/2002) Privates Investorenpotential in Österreich, IUW Emittentenbefragung 04/2002) have brought evidence that there could be a market for securities proved against ethical ecological standards if somebody would match the supply (quoted companies) with the demand (sustainability investment private investors). This matching is usually due to financial services e.g. funds industry, banks etc.

Evaluation procedure and results

Basing on a set of sustainability indicators generated through the foregoing project we developed a questionnaire for measuring the sustainability performance of the prime market quoted companies at the Vienna stock exchange (n=37). The survey time was from 12/03 to 03/04. Parallel we surveyed a representative Austrian sample by web (n=1002, 06/2004) in order to get weighting factors for stakeholders and indicators as well as data for the identification of market potentials (private investors). The weighting outcomes provided the last step of evaluation - the ranking.

The analysis of the market potentials (private investors) arises - under extreme conservative assumptions - an investment volume of € 2,2 billion per year. That is 16% of the saving volume in the years 2003 in Austria. Furthermore arises 343 of the 1002 sample can be mobilised for investment in equities if companies' performances are proved against sustainability standards. This could be a non neglectable contribution to Austrian capital market.

The survey of the market participants at the Vienna stock exchange (n=15, 02/04 - 04/04; representing 70% of the trading volume) arises an estimation of market potentials in contrast to the EASEY representative survey. A study of the TU Darmstadt 2002/2003 concerning private investment decisions is strengthening the EASEY outcomes. The reason of the divergence of the two outcomes is to be seen as a lack of knowledge about customers' decision criterions due to financial services. Market participants rank profit highest by 85% to 95%. But investors themselves rank profit only by 51%

Nevertheless, the launch of the EASEY index is the time critical factor for each further step forward in the research field "financial market and sustainability".

Objectives and goals

  1. Ranking of sustainability performance of the companies quoted at the prime market segment at the Vienna stock exchange.
  2. Two surveys: (1) Market participants (2) representative Austrian sample regarding preferences to sustainability and equity investment.
  3. Launch and daily announcement of the EASEY index.

Two of the mentioned goals could be achieved. The third - the daily publishing - is still a work in progress.

Methods

The weighting factors were questioned by a standard questionnaire (online). The sustainability performance was questioned by a standard questionnaire too. Secondary sources were used like reports, web etc. (qualitative verbal data). They were aggregated to a level in order to make them consistent to primary data sources. Achieving the intended outcome we used four different methods (1) description and analyses via Excel/ SPSS (2) Economic Value Added (3) Sustainability Value Added (4) Multi Criteria Analyses (MCA) Outranking Promethee.

Data

The majority of data used were generated by primary source through two surveys (mainly ordinal the rest cardinal scaled). Additionally we used secondary sources as reports and web (qualitative verbal data).

Project Partners

Project manager:
Wirtschaftsuniversität Wien - Abteilung für Wirtschaft und Umwelt
Dr. Reinhard Paulesich
Rossauer Lände 23, 1090 Wien
Telefon: ++43 1 31336 5721
Fax: ++43 1 31336 709
reinhard.paulesich@wu-wien.ac.at

Project partner:
Unternehmensberatung Friesenbichler, Wien
Mag. Reinhard Friesenbichler

Forschungsinstitut für Nachhaltiges Wirtschaften (FINWI), Innsbruck
Mag Werner Kössler
Mag. Sabine Waidhofer

Zentrum für soziale Innovation (ZSI), Wien
Mag. Dr. Michael Ornetzeder
Mag. Maria Schwarz Wölzl

PriceWaterhouse Coopers, Wien
Dr. Aslan Mila
Mag. Georg Pföstl
Martin Beinstein

Wiener Börse AG, Wien
Dr. Erich Obersteiner
Mag. Gerhard Schwediauer

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