BIST Stock Indices

To increase the understanding, knowledge, and practices on sustainability in Turkey and especially among companies listed on Borsa İstanbul , the BIST Sustainability, and the BIST Sustainability 25 indices were created, which include the shares of companies traded on Borsa İstanbul and whose corporate sustainability performances are at a high level.

As it is known, corporate sustainability is the adaptation of economic, environmental, and social factors to company activities and decision mechanisms, together with principles of corporate governance, and the management of risks that may arise from these issues, to create long-term value in companies.

BIST Sustainability Index was launched on November 4, 2014, to guide companies in policymaking by considering the risks related to environmental, social, and governance issues besides creating a platform where information on relevant policies is conveyed to investors.

Expected Contribution From Index

With the start of the index calculation, a competitive advantage is provided to companies proficient in managing corporate risks and opportunities, while our capital market is presented with an index on which new investment products can be developed so that companies can attract new capital and provide financing under favorable conditions.

The index reveals how companies approach sustainability-related issues that are critical for Turkey and the world, such as global warming, depletion of natural resources, decrease in water resources, health, security, and employment, and ensures that their activities and decisions are independently evaluated and, in a sense, certified.

The index allows companies to compare their corporate sustainability performances locally and globally. The index also provides companies with a performance evaluation tool to make improvements and set new targets and provides them with the opportunity to improve their corporate transparency and accountability, as well as their risk management skills regarding sustainability-related issues. It is thought that this will create a competitive opportunity for companies, and that the public awareness and reputation of the companies included in the index will increase.

With the launch of the BIST Sustainability 25 Index, a new index created for investors to distinguish and invest in companies that adopt sustainability and corporate social responsibility principles, and a new index for asset managers to launch various financial products such as funds, exchange-traded funds and structured products based on sustainability principles.

Sustainability Assessment

Within the scope of the agreement made between Borsa İstanbul and the London Stock Exchange Group (LSEG), LSEG's sustainability assessment results are used in determining the companies that will be included in the BIST Sustainability indices, starting from the 2021 evaluation. Only “publicly available” data is considered in the assessment. Volunteers from companies listed on the BIST Stars, BIST Main, and BIST Submarket markets are included in the sustainability assessment. Companies wishing to be included in the valuations must submit their requests in writing to the Borsa İstanbul Index Directorate, and there is no cost to the companies for being included in the assessment.

Companies included in the Sustainability Assessment are expected to enter their publicly available sustainability data and links to publicly available sources into the web-based LSEG ESG Contributor Tool. Companies must first create a user profile to access the LSEG ESG Contributor tool. Multiple users can be defined for a company, but the same user cannot enter data for multiple companies. Regarding the Contributor Tool, a video explaining how companies can enter their current year data, where they can view LSEG’s feedbacks on their submitted data, how they can revise their historical ESG data, how they can view the pillar and category scores as of their own and of the other companies in the same industry, can be accessed at The ESG, Events and Officers & Directors Contributor Tool (lseg.com).

There is no set schedule or deadline for companies to enter their data into the platform. Companies can enter data into the platform throughout the year. Every data entered into the platform is evaluated by LSEG, and companies' sustainability scores are updated accordingly. Companies can review and answer questions by logging into the platform as often as they prefer and change their answers at any time, but it should be taken into account that it may take 6-8 weeks for the updated data to be reflected in the Sustainability scores.

LSEG ESG assessments are available free of charge at https://www.lseg.com/en/data-analytics/sustainable-finance/esg-scores For alternatives to access more detailed data, the explanations at https://www.lseg.com/en/data-analytics/financial-data/company-data/esg-data can be examined.

BIST Sustainability Indices

In order to be included in the BIST Sustainability Index, companies are expected to meet all three of the following conditions.

• ESG Score should be 50 or more.
• Each Pillar score (Environment, Social, Governance) should be 40 or more.
• At least 8 of category scores should be 26 or more.

With the BIST Sustainability 25 Index, has been launched as of November 21, 2022, it is aimed to create an index consisting of large and liquid companies with high sustainability performance. The stocks to be included in the BIST Sustainability 25 Index are determined by selecting the 25 stocks with the highest Transaction Volume and Market Value among the stocks of companies that meet all three of the following criteria:

• ESG Score should be 70 or more.
• Each Pillar score (Environment, Social, Governance) should be 60 or more.
• At least 8 of category scores should be 50 or more.

There are 4 index periods a year: January-March, April-June, July-September and October-December, and in these periods, the ESG scores available in the LSEG terminal are used when determining the shares to be included in the indices on the first Mondays of December, March, June and September.

In addition to these two indices, BIST Participation Sustainability Index was formed for investors who want to invest in participation finance and sustainability themes together. The scope of the index consists of the shares of companies that meet the selection criteria of the BIST Participation All Shares and BIST Sustainability indices. Detailed information about BIST Participation indices can be accessed on the Indices/Participation page.

Resources

LSEG Sustainability Assesment Methodology

https://www.lseg.com/content/dam/data-analytics/en_us/documents/methodology/lseg-esg-scores-methodology.pdf?esg=Super+Retail+Group+Ltd

Contributor Tool Account Registration

https://contribute.refinitiv.com/Account/Registration

Contributor Tool User Guide

https://www.borsaistanbul.com/files/ContributorToolUserGuide.pdf

Contributor Tool Tutorial Video

The ESG, Events and Officers & Directors Contributor Tool (lseg.com)

Contributor Tool FAQ

https://www.borsaistanbul.com/files/ContributorToolFAQ.pdf

LSEG Assessment Results

https://www.lseg.com/en/data-analytics/financial-data/company-data/esg-data

LSEG Company Based ESG Assessment Results

https://www.lseg.com/en/data-analytics/sustainable-finance/esg-scores

LSEG Learning Centre

https://www.lseg.com/en/training/learning-centre/

Please click for BIST Market Cap Weighted Stock Indices Methodology including the rules of BIST Sustainability Index and BIST Sustainability 25 Index.

Please click for BIST Sustainability (XUSRD) and BIST Sustainability 25 Index constituents.