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Mrs. Esin Akbulut, Executive Vice Chairman of the Istanbul Stock Exchange opened the event by remarking on the increasing relevance of corporate sustainability programs to investment and the role of the ISE in promoting sustainability leadership amongst its listed companies.
“We believe that there is vast opportunity for the Turkish economy, and Turkish businesses that embrace the international standard for corporate sustainability practices. The development of a Sustainability Index for Turkey will provide investors, in Turkey and internationally, with new opportunities for favourable risk/return investments. The ISE Sustainability Index (ISESI) aims to provide a platform for Turkish companies demonstrating best practice in corporate sustainability to be profiled to investors. ISESI will enable Turkish and international investors to benchmark listed companies for their leadership in the development of sustainable business in Turkey. Turkish and international investors may use the ISESI as a tool to understand the importance of the management of sustainability for the short and long-term health of businesses.”
On the 10th of August 2010, Mr. Hüseyin ERKAN, Istanbul Stock Exchange Chairman & CEO, and Mr. Mehmet GÖÇMEN, Chairman of Business Council for Sustainable Development Turkey, signed a Memorandum of Understanding (MoU) in order to jointly create a new index offering significant opportunities for the capital markets, companies and investors, namely, “ISE Sustainability Index (ISESI)”.
Over 100 listed company members of the Istanbul Stock Exchange, their investors and stakeholders attended a Project Kick-off Workshop for the Sustainability Index Project which explored the state of corporate sustainability in Turkey – and related risks for Turkish companies. International experts involved in the project say that a growing number of investors are now convinced that sustainability is a catalyst for enlightened and disciplined management, and, thus, a crucial success factor for corporations show superior performance and favorable risk/return profiles. The inputs from this workshop will be used to design the ISE Sustainability Index over the next six months. Mr. Bjorn Stigson, President of the World Business Council for Sustainable Development (WBCSD), headquartered in Geneva, Switzerland, reminded the audience of Turkish companies and investors that, “the world is increasingly being defined by sustainability issues”, and “global CEOs are meeting today’s challenges by ensuring that their business models are robust enough to withstand the imminent shocks of a resource constrained world”. Mr. Stigson went on to commend the ISE and TBCSD for initiating the ISE Sustainability Index Project, which will identify corporate leaders in the management of sustainability in Turkey, and will provide an important market incentive that is more aligned with the future goals of sustainable development.
This workshop marks the first in a series of workshops planned for 2010 and 2011 by the Istanbul Stock Exchange Sustainability Index Project. The ISE Sustainability Index will be developed using a unique multi-stakeholder process design that will engage companies, investors and relevant stakeholders from the Turkish market in the development and agreement of the selection criteria for the index. The stakeholder process will be run by international experts Cheryl D. Hicks [Lead advisor on corporate sustainability] and Graham Sinclair [Lead advisor on sustainable investment]. Company assessments will be completed by a third party institution with conceptual input from Sustainable Asset Management (SAM), research provider of the Dow Jones Sustainability Indexes [DJSI].
The ISE Sustainability Index is planning its launch for the last quarter of 2011.
