/ Borsa Istanbul chooses EIRIS to create BIST Sustainability Index
Indices News - Press Releases - 22/11/2013
Borsa Istanbul chooses EIRIS to create BIST Sustainability Index
Today EIRIS announces that the Borsa Istanbul, the Turkish stock exchange, has chosen global responsible investment research provider EIRIS as its partner to develop the BIST Sustainability Index, which will be launched in early 2014. Borsa Istanbul listed companies will be assessed against a set of environmental, social and governance (ESG) indicators and those companies that perform better than the required criteria will be included in the new index
The methodology that underpins the research for the new BIST Sustainability Index draws on EIRIS’ 30 years of experience in the field of responsible investment and sustainability research and the robust methodology that EIRIS has developed for assessing corporates in emerging markets, covering 300 companies. Assessment of corporate performance for the new index will be based on publicly available information against chosen ESG indicators that are derived from EIRIS’ Global Platform, an innovative and intuitive platform for sustainability data. The criteria include bribery, governance, human rights, biodiversity, health and safety, and climate change, amongst others. BIST 30 Index constituents will be included in the first assessment and BIST 50 Index constituents will be assessed in the second assessment. The number of companies assessed may increase further in the future.
“We are delighted to be working with Borsa Istanbul, a key player amongst emerging markets stock exchanges, and to be contributing to the development of new tools for institutional investors looking to invest in Turkey,” said Peter Webster, CEO of EIRIS. “Emerging markets have a vital role to play in developing a global sustainable economy. Sustainable stock exchange initiatives, such as the Borsa Istanbul’s Sustainability Index initiative, are crucial in driving more sustainable corporate performance globally and at the local level. Companies, investors and wider society benefit from such sustainability initiatives.”
EIRIS works with a number of stock exchanges around the world, including the Borsa Istanbul in Turkey, the Johannesburg Stock Exchange in South Africa and the Bolsa Mexicana de Valores in Mexico. EIRIS provides data and analysis services to help stock exchanges develop, launch and grow sustainable indices, from defining criteria and collecting data, to developing and implementing new index rules, and engaging with companies and the investment community. EIRIS’ recent report Sustainability Initiatives: Insights from Stock Exchanges into Motivations and Challenges shares insights from those stock exchanges that have implemented sustainability initiatives and includes EIRIS’ recommendations to help stock exchanges realise effective initiatives in the future.
Research for the index assessment will be completed by EIRIS and a local research organisation, the Corporate Governance Forum at the University of Sabanci in Turkey. EIRIS has developed an international network of research partners which strengthens EIRIS’ knowledge and expertise in key emerging markets.
Mustafa Kemal Yılmaz, Executive Vice President of Borsa İstanbul stated, “We cooperate in our sustainability index with EIRIS, which is one of the most credible sustainability research organisations and most experienced with the index providers globally. We believe that the index will bring competitive advantage to Borsa İstanbul listed companies. They will use the Index as a performance benchmark to improve their social, environmental and governance performances and to adopt new targets. Investors on the other hand, will have a new instrument to develop new investment products and a showcase to select and invest in the companies with better sustainability performances. We are excited to work with EIRIS on this project and to see the effects of the index on our market in the near future.”