Borsa İstanbul launched BIST Sustainability Index where constituents are shares of companies with high performance on corporate sustainability, in order to increase the awareness, knowledge and practice on sustainability in Turkey and especially for companies trading in Borsa Istanbul markets.
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%.
Borsa İstanbul has signed a cooperation agreement with Refinitiv Information Limited (“Refinitiv”) to assess Borsa İstanbul listed companies based on the international sustainability criteria. The constituents of BIST Sustainability Index are determined according to these assessments. The assessments are based on publicly available information only and assessment costs of companies are covered by Borsa İstanbul.
There are four index periods for BIST Sustainability Index as January-March, April-June, July-September, October-December. The index is calculated with the constituents selected from a list of companies which are traded in BIST Stars Market and which are already constituents of BIST Sustainability Index and voluntary to be assessed for the BIST Sustainability Index. “The assessment list” is revised quarterly and announced by Borsa İstanbul. In order to be included in the BIST Sustainability Index, companies are expected to meet all three of the following conditions.
- Combined 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.
Detailed information about scoring is given on Refinitiv’s sustainability assessment methodology. Refinitiv’s assessment methodology can be seen via https://www.refinitiv.com/en/sustainablefinance/esg-scores#methodology , online trainings can be seen via https://training.refinitiv.com/videoplayer/videos/24121 and other informative documents can be seen via https://www.refinitiv.com/en/financial-data/company-data/esg-data
Please click for BIST Sustainability Index (XUSRD) constituents and weights for related index period. (updated quarterly)
Please click for BIST Market Cap Weighted Stock Indices Ground Rules.
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.
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 for further improving 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.
For companies, the Index facilitates 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.