A New Era Begins in the BIST Sustainability Index

A New Era Begins in the BIST Sustainability Index

As of October 1, 2021, a new era in the BIST Sustainability Index is set to begin in Borsa İstanbul.

BIST Sustainability Index, which is an index of companies whose shares are traded on Borsa Istanbul and whose corporate sustainability performance is at a high level, has been calculated since November 4, 2014. Along with the calculation of the Index, the activities of companies with high sustainability performance in this field have become more visible in terms of the market. Accordingly, the awareness, know-how and hand-on practices have increased in Turkey and in companies listed in Borsa İstanbul particularly.

With the implementation of the change in the assessment methodology announced by Borsa Istanbul on July 16, 2021, a new era begins in the BIST Sustainability Index as of October 1, 2021.

Along with the use of Refinitiv's assessment methodology consisting of 3 main pillars as environmental, social and corporate governance, 10 categories, 25 themes and more than 450 data points related to the themes, it becomes easier for investors to access the sustainability scores of the assessed companies. Stakeholders are able to access sustainability data and scores of companies through Eikon terminals and Refinitiv's website, except for the non-compliance notes.

The sustainability assessment, which was previously carried out once a year to select the companies that will be included in the BIST Sustainability Index, gains continuity in this new period in which Refinitiv's assessment methodology is used. In the new period, companies will be able to update their sustainability data throughout the year. Accordingly, sustainability scores of companies will be revised and companies that meet the criteria will be included in the Sustainability Index as of the beginning of the next quarter. Sustainability scores of companies that meet the criteria and included in the index will be monitored weekly. Companies whose sustainability scores fall will be excluded from the index. Thus, companies with negative sustainability performance will be prevented from remaining in the index throughout the period.

Furthermore, in the upcoming period, it is aimed to extend the number and diversity of sustainability-themed indices by creating sub-indices of investment with fewer shares and on which futures contracts and similar financial products can be issued. Thus, it is intended to facilitate investing in sustainability theme for Borsa İstanbul investors.

In today's world, where expectations regarding sustainability raise in terms of investors and regulators and on a national and international level, Borsa İstanbul invites listed companies that have awareness on sustainability and green production to take immediate action by conducting cooperation. With the products and services it has launched, particularly the BIST Sustainability Index, Borsa İstanbul continues to support investors and issuers, form collaborations and take market-friendly steps to increase operability.