Borsa İstanbul launched BIST Sustainability Index and BIST Sustainability 25 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 Türkiye and especially for companies trading in Borsa İstanbul markets.
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 Indices 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.
The constituents of the indices are voluntary companies which are traded in BIST Stars Market, BIST Main Market and BIST SubMarket and meet the necessary conditions.
BIST Sustainability Index has been launched on the 4th of November with the aim of guiding companies in the process of policy making considering the risks related to environmental, social and governance issues besides informing the investors about the sustainability policies of the companies.
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.
BIST Sustainability 25 Index has been launched on the 21th of November in order to create an index which has constituent companies with high sustainability performance and also high market capitalization and market value. 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 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
and the companies to be included in the index are chosen among these companies according to their market capitalization and market value. The highest 25 are included in the index.
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 (XUSRD) and BIST Sustainability 25 Index constituents.
Please click for BIST Market Cap Weighted Stock Indices Methodology including the rules of BIST Sustainability Index and BIST Sustainability 25 Index.
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 and facilitates the access to global clients, capital, and lower-cost finance.
With the start of the BIST Sustainability 25 Index, it is aimed 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.