BIST Sustainability Index aims to provide a benchmark for Borsa İstanbul companies with high performance on corporate sustainability and to increase the awareness, knowledge and practice on sustainability in Turkey. Moreover the index is a platform for institutional investors to demonstrate their commitment to companies managing environmental, social and governance (ESG) issues with high performance.
Borsa İstanbul has signed a cooperation agreement with Ethical Investment Research Services Limited (EIRIS) to create BIST Sustainability Index. In accordance with this agreement, EIRIS assesses Borsa İstanbul listed companies based on the international sustainability criteria. The assessment is based upon only publicly available information and assessment costs of companies are covered by Borsa İstanbul.
The detailed Research Methodology document, which covers the indicators under each of the different ESG criteria, that the assessments is based upon, has been revised by EIRIS to make it more understandable and simple for companies and the coverage of the methodology has been enhanced by the inclusion of the Banking Criteria as of December 2015. “BIST SUSTAINABILITY INDEX RESEARCH METHODOLOGY” document is available in the attached file.
BIST SUSTAINABILITY INDEX
BIST Sustainability Index has been launched on the 4th of November, 2014 with the code XUSRD. The initial value of the index is 98.020,09 based upon the second session closing value of BIST 30 index on the 3rd of November 2014. The relative weight of each constituent is capped at 15%.
There is one index period for BIST Sustainability Index as November-October. In 2014, the index started to be calculated with the constituents selected from BIST 30 Index according to sustainability assessments. Starting from 2019, it will be calculated with the constituents selected from a list of companies which constitute BIST 100 and BIST Sustainability indices and voluntary to be assessed for the BIST Sustainability Index. “The assessment list” is revised annually and announced by Borsa İstanbul in December. Click to access “The list of companies subject to assessment” for 2020.
Please click for BIST Sustainability Index Ground Rules.
Please click for BIST Sustainability Index (XUSRD) constituents for December 2020 – October 2021 period.
Expected Contribution From Index
The index provides competitive advantage to Turkish companies managing their corporate risks and opportunities effectively. An investible index on which new instruments can be developed is in place to attract capital for companies. The Index reflects companies’ approach to important sustainability issues including global warming, draining of natural resources, health, security and employment, while allowing an independent assessment of their operations and decisions regarding these issues and, in a sense, their registration.
The Index offers companies the opportunity to compare their sustainability performance on both local and global level. With the Index, Borsa İstanbul provides companies an instrument for evaluating their performance and consequently adopting new targets or furthering their performance while allowing them to develop their risk management abilities for corporate transparency, accountability and sustainability. This, in turn, allows companies to gain a competitive edge. Inclusion in the Index adds to their visibility and prestige.
The Index facilitates for companies the access to global clients, capital, and lower-cost finance. The project aims to create an instrument which allows investors to select and invest in companies that adopt principles of sustainability and corporate governance. Today, responsible investment is preferred mainly by institutional investors. BIST Sustainability Index encourages founding such funds, while facilitating for Index-constituent companies to get a larger share from such funds. At the same time, the Index offers a new financial asset category for all investors.