BM&FBOVESPA announced today the Corporate Sustainability Index (ISE) effective from January 3, 2011 to December 29, 2011. The new portfolio is composed of 47 shares from 38 companies. They represent 18 sectors and have a joint market capitalization of BRL 1.17 trillion – the equivalent of 46.1% of the market capitalization of all of the companies traded on BM&FBOVESPA (on November 25, 2010). Three sectors are debuting on the index: educational services, holding company and mining.
Of the 34 companies that were included in the previous index, 32 have been selected again for the new one. The six newcomers are: Anhanguera, BICBANCO, COPASA, Santander, Ultrapar and Vale. As it now has 38 participants, the ISE portfolio is close to its current limit of 40 firms. This encourages companies to make more of an effort to remain on the index and also increases the diversity of the portfolio.
The previous index contained 43 stocks from 34 companies. They represented 16 sectors and had a joint market capitalization of BRL 730 billion – the equivalent of 32.21% of the market capitalization of all of the companies traded on BM&FBOVESPA (on November 24, 2009).
New Portfolio - 2011
| AES Tiete | Braskem | Copasa | Eletropaulo | Gerdau | Light S/A | Sulamérica | Ultrapar |
| Anhanguera | Brf foods | Copel | Embraer | Gerdau met | Natura | Suzano papel | Vale |
| Bicbanco | Cemig | Cpfl energia | Energias BR | Inds Romi | Redecard | Telemar | Vivo |
| Bradesco | Cesp | Duratex | Even | Itausa | Sabesp | Tim part S/A; | |
| Brasil | Coelce | Eletrobras | Fibria | Itauunibanco | Santander | Tractebel |
Previous Portfolio – 2009/2010
| AES Tiete | Cemig | Dasa | Energias Br | Inds Romi | Redecard | Tim Part S/A |
| Bradesco | Cesp | Duratex | Even | Itausa | Sabesp | Tractebel |
| Brasil | Coelce | Eletrobras | Fibria | Itauunibanco | Sul America | Usiminas |
| Braskem | Copel | Eletropaulo | Gerdau | Light S/A | Suzano Papel | Vivo |
| BRF Foods | CPFL Energia | Embraer | Gerdau Met | Natura | Telemar |
Term Change
The ISE Deliberative Council determined in October that there will be a change to the term of the portfolio, which will run from the first working day of January to the last working day of December of the same year. Prior to this, the portfolio’s term ran from the first working day of December to the last day of November the following year. The change will ease the adjustment of fund portfolios linked to ISE, and help in the creation of new products, as the term will come into line with that of other indexes.
X-ray of the new portfolio:
The companies that are part of the new ISE portfolio were selected from 53 firms that answered a questionnaire developed by the GVces sustainability studies center of the São Paulo Getúlio Vargas Foundation business school (FGV-EAESP). The questionnaire was sent out to the 182 companies that are the issuers of the 200 most liquid shares on BM&FBOVESPA. Among the respondents, ten took part in the questionnaire for the first time and four joined in as a trial run, using the 2011 evaluation process as a preparation for the coming years.
Other highlights among the participant firms:
- 100% of the companies are committed to sustainable development as formally set out in this strategy;
- 97% publish this commitment on the open-access area of the website;
- 100% understand that this commitment means: respect for the environment, ethical business practices and ethical customer and consumer relations; while 89% have an education and awareness-raising program regarding the subject;
- 87% of firms formally and publicly adhere to widely-recognized voluntary commitments concerning sustainable development, which cover all of their units and all of their subsidiaries or controlled companies;
- 100% publish a sustainability report, in regard to which:
- In 79% of cases the report is an integral part of the main corporate report;
- In 84% of cases directives of the Global Reporting Initiative (GRI) are followed;
- In 92% of cases there is the direct involvement of company directors in drawing up the Sustainability Report.
