B3 Announces The 13th ISE – Corporate Sustainability Index Portfolio

B3 announced today the release of the thirteenth Corporate Sustainability Index (ISE) portfolio, effective from January 8, 2018 to January 4, 2019. The new portfolio, whose technical partner since its inception is the Sustainability Research Center at Fundação Getulio Vargas (GVces), comprises 33 stocks of 30 companies. The companies are drawn from 12 industry sectors and together account for a market capitalization of BRL1.28 trillion, or 41.47% of the combined figure for all the companies traded on B3, based on the November 21, 2017 closing.

New Portfolio – 2018

* For the ISE annual process announced today, 179 companies with the 200 most liquid equities on B3 were invited. Of these, 41 signed up for the process in three categories: 37 as Eligible, 3 as Simulated and 1 as Training.

Current Portfolio – 2017 (valid until January 05, 2018)

Since its inception in 2005, the ISE gained +185.01% against +113.72% for Ibovespa (based on November 21, 2017 closing). In the same period, the ISE was also less volatile: 24.67% compared to 27.46% for Ibovespa.

This year again, the ISE process included the external assurance by KPMG, which awarded the index "Limited Assurance No Reservations” status. The ISE assurance process has been performed since 2012 ensuring greater credibility and reliability to the index. Furthermore, the ISE has also maintained its daily press monitoring partnership with the company Imagem Corporativa. .  

With transparency being one of B3’s key agenda items, the publication of answers to the evaluation questionnaire is a pre-requisite for companies to join the ISE. The answers given by the 30 companies are published on the ISE website: www.isebvmf.com.br.

X-RAY OF THE 2018 PORTFOLIO

• 98% of companies seek to include sustainability related aspects to their employee performance targets (95% in 2017). Furthermore, 85% of companies award and recognize their employees for their sustainability performance (73% in 2017).
• Over the past three years, 92% of companies have conducted studies on their vulnerabilities to climate change and its potential impacts on their business (71% in 2017).
• 91% of companies take into account the risks and opportunities posed by climate change in their strategic planning and/or risk management processes (85% in 2017).
• 96% of companies declare they consider adapting to climate change in the design and/or review of their business ventures, processes, products, and/or services (74% in 2017).   
• 49% of the companies have incorporated internal carbon price into their business as a tool to reduce their carbon emissions (18% in 2017).
• Just like in 2017, 100% of companies in the ISE portfolio publish a Sustainability Report in accordance with GRI directives.
• 93% of companies include periodical assessments of socio-environmental issues at meetings of the Board of Directors or of the committees that report to the Board (88% in 2017). However, only 24% of the companies incorporate in the selection process of their managers criteria and aspects related to their behavior and knowledge regarding social-environmental issues (26% in 2017).
• 51% of companies have one or more women on the Board of Directors (50% in 2017), 31% of companies declare they still do not have women on their Board nor do they have a plan in place to promote gender diversity and balance (41% in 2017).
• 14% of companies have one or more black persons on their Board of Directors (12% in 2017). 69% of companies still do not have black persons on their Board nor do they have a plan in place to promote racial diversity and equality (79% in 2017).
• 100% of companies declare to have performed analyses to identify whether there is a direct and relevant connection between their business practices resulting from voluntary commitments and Sustainable Development Goals (SDGs) (87% in 2017).
• 91% of companies declare to have adopted practices that contribute to SDG 9 - Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation (54% in 2017).  
• 98% of companies declare to have adopted practices that contribute to SDG 12 - Ensure sustainable production and consumption patterns (81% in 2017).
• 6% of companies declare to have adopted practices related to SDG 14 – Conservation and sustainable use of oceans, seas and marine resources for sustainable development (8% in 2017).
• 87% of companies declare to have adopted practices that contribute to SDG 16 - Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels (67% in 2017).