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The new portfolio of the Corporate Sustainability Index (ISE) is valid since December 1st, 2006 and comprises shares issued by companies recognized for their high level of commitment to sustainability and social responsibility.
The first portfolio renewal of the index included ten additional listed companies: Acesita, Coelce, Energias do Brasil, Gerdau, Localiza, Metalúrgica Gerdau, Petrobras, Suzano Petroquímica, TAM and Ultrapar. On the other hand, four companies had their shares excluded from the index: Cesp, Copesul, Eletrobrás and WEG.
The 120 listed companies within the 150 most liquid shares received the questionnaire developed by Center for Sustainability Studies (Gvces) at the Business Administration School of São Paulo of Getúlio Vargas Foundation (FGV-EAESP). 60 companies responded to the questionnaire.
See the list of companies that compose the portfolio of ISE:
| Acesita - ACES4 | Gerdau Met - GOAU3 |
| All Amer Lat - ALLL11 | Gerdau Met - GOAU4 |
| Aracruz - ARCZ6 | Gol - GOLL4 |
| Bradesco - BBDC3 | Iochp-Maxion - MYPK4 |
| Bradesco - BBDC4 | Itaubanco - ITAU3 |
| Brasil - BBAS3 | Itaubanco - ITAU4 |
| Braskem - BRKM5 | Itausa - ITSA3 |
| CCR Rodovias - CCRO3 | Itausa - ITSA4 |
| Celesc - CLSC6 | Localiza - RENT3 |
| Cemig - CMIG3 | Natura - NATU3 |
| Cemig - CMIG4 | Perdigão - PRGA3 |
| Coelce - COCE5 | Petrobras - PETR3 |
| Copel - CPLE3 | Petrobras - PETR4 |
| Copel - CPLE6 | Suzano Papel - SZPB5 |
| CPFL Energia - CPFE3 | Suzano Petr - SZPQ4 |
| Dasa - DASA3 | Tam S/A - TAMM4 |
| Eletropaulo - ELPL6 | Tractbel - TBLE3 |
| Embraer - EMBR3 | Ultrapar - UGPA4 |
| Energia BR - ENBR3 | Unibanco - UBBR3 |
| Gerdau - GGBR3 | Unibanco - UBBR11 |
| Gerdau - GGBR4 | VCP - VCPA4 |
Concept and methodology
ISE was formulated on the basis of the international Triple Bottom Line (TBL) concept, which performs an integrated assessment of environmental, social and economic-financial elements. Another three indicators were added to the TBL principles: corporate governance, general characteristics and nature of product.
The economic-financial, social and environmental dimensions of companies were posed in the questionnaire on the basis of four sets of criteria: Policies (indicators of commitment); Management (plans, programs, targets and monitoring); Performance (performance indicators); and Legal Compliance (compliance with norms and regulations in areas such as the environmental, labor, competition, consumer etc).
The Deliberative Board of the ISE consists of the following organizations: BOVESPA, ABRAPP (Brazilian Association of Pension Funds), ANBID (National Association of Investment Banks), APIMEC (Association of Capital Markets Analysts and Investment Professionals), IBGC (Brazilian Institute of Corporate Governance), IFC (International Finance Corporation), Ethos Institute of Social Responsibility and the Brazilian Ministry of the Environment.
ISE on Bovespa
ISE reflects yield from a portfolio consisting of shares issued by companies with the best rating on all of the dimensions that measure corporate sustainability. It was created as a benchmark for socially responsible investment and also to encourage best practices in Brazilian business. It is calculated by BOVESPA in real time during trading sessions based on prices of the latest trade in the cash market. ISE shares are selected among the most heavily traded stock on BOVESPA in terms of liquidity and are also weighted in the portfolio by market value of assets available for trading.
