Launch of the 2017/2018 ISE Process
Today, BM&FBOVESPA launched the 2017/2018 Corporate Sustainability Index (ISE) process. During the launch event there was the presentation of: the 2017 activities calendar; news about the process for the year in question; and the agenda and methodology for the 2017/2018 questionnaire review cycle.
One of the new features announced for this year is the enhanced transparency tool to access answers given by the companies in the portfolio. With this new resource, users can now select and compare, side by side, the companies whose answers they wish to see.
Meanwhile, the review cycle of the 2017/2018 ISE questionnaire will begin with workshops over March 22-24. Also this year, in addition to there being a review of the questions in the 2017 questionnaire, there will be discussions about emerging and particularly relevant subjects, in order to guide the agenda of companies and investors in relation to sustainability in the coming years. The discussion about these subjects will be cumulative, beginning with a public hearing within the next few weeks and proceeding over the year so that in 2018 there can be the presentation of a questionnaire that has undergone a more profound review process.
It was also announced at today’s event that in April there will be the launch of the ISE diagnosis tool name DBI, which is being promoted within the context of the Vem Pra Bolsa! initiative. Through DBI, private companies can use the system developed for the Simulado (simulated) ISE category, to carry out sustainability self-diagnoses. This aims to grant private companies access to a version of the questionnaire that has been adapted for them and to knowledge accumulated over the ISE selection processes.
- The Corporate Sustainability Index (ISE) was created in 2005, being the fourth of its kind in the world (1st: New York; 2nd: London; 3rd: Johannesburg).
- It seeks to act as a driver of good practices in the Brazilian corporate world and to be a reference for socially responsible investment.
- ISE reflects the average return of a theoretical portfolio of equities in publicly –traded companies listed on BM&FBOVESPA and which have sustainability best practices.
- Its methodology is the responsibility of the Sustainability Study Center (GVCes) of FGV-EAESP, which is based on a questionnaire that has seven dimensions: Environmental, Social, Financial-Economic, Corporate Governance, General, Nature of the Product and Climate Change. The assessment of companies occurs in two fields: quantitative (answers to the questionnaire) and qualitative (submission of supporting documentation in sample form).
- The index is calculated by BM&FBOVESPA in real time throughout the trading session, considering the prices of the last trades executed in the cash market. Companies that have the 200 most traded equities in the trading session in terms of liquidity are invited to take part in the process.
- ISE’s option for the investor with an awareness of this agenda is ETF ISUS11, which was listed on October 31, 2011. ETFs seek to mirror their indexes, and their shares are traded on the Exchange in the same was as equities.
- ISE’s highest level of corporate governance its Advisory Board (CISE), which is made up of more than ten bodies: the Association of Capital Markets Analysts and Investment Professionals (APIMEC), the Brazilian Association of Pension Funds (ABRAPP), the Brazilian Financial and Capital Markets Association (ANBIMA), the Group of Institutes, Foundations and Enterprises (GIFE), the Brazilian Institute of Independent Auditors (IBRACON), Brazilian Institute of Corporate Governance (IBGC), the International Finance Corporation (IFC), the United Nations Environment Programme (UNEPFI) and the Brazilian Ministry of the Environment.