Corporate social responsibility and sustainability have become hot topics in financial sector, as every other sector. In particular, the increase in the number and in the expectations of the investors who are sensitive to these issues, have been essential in raising awareness among both companies and regulators.

Exchanges have a big and leading role in promoting sustainability in finance. An increasing number of them are developing projects related to this subject.

The sustainability strategies of World Federation of Exchanges (WFE) member exchanges are classified into three general categories:

1) To create awareness in listed companies on the environment, social responsibility, and corporate governance issues

2) To calculate sustainability indices, to educate investors and to create sustainable products

3) To set up specialized markets for specific ESG-compliant investment instruments

In relation to the first category, Borsa Istanbul Sustainability Guide for Companies (in Turkish) was first published in 2014 and updated in 2020. The guide provides companies a roadmap on ESG issues.

As to the second category, Borsa İstanbul launched BIST Sustainability Index in 2014. In 2021, the calculation methodology has been revised. In cooperation with data company Refinitiv, the latter’s ESG ratings are now being used to calculate the index. Thanks to this modification, more and more companies are able to be part of the index. Again in 2021, Sustainability Participation Index has been launched as a second sustainability-themed index. It more appeals to the investors who are sensitive to interest rate.

In relation to the third category, regulations on sustainable finance are being drafted and prepared by the regulator, Capital Markets Board of Türkiye. All stakeholders in Turkish capital markets, including Borsa Istanbul, are contributing to this process. For the time being, there is no need for a specific market for sustainable products.  

International Cooperation

WFE Sustainability Working Group is working to identify the role of exchanges in developing a sustainable financial world and, thus, a sustainable community. As a WFE member exchange, Borsa Istanbul is actively contributing to SWG’s efforts.

United Nations Sustainable Stock Exchanges Initiative (SSE) has been established in 2009 to promote sustainability in capital markets and Borsa Istanbul has been one of the first five exchanges that have signed the foundation document at the RIO + 20 Summit in 2012. There are more than 100 member exchanges. Borsa Istanbul and SSE are in close cooperation in different fields.

In order to promote sustainable finance among derivatives exchanges, SSE launched in 2021 another initiative designed for derivatives exchanges. Borsa Istanbul is one of the founders.

The Women’s Empowerment Principles (WEPs) are a set of principles offering guidance to business on how to promote gender equality and women’s empowerment in the workplace, marketplace and community. Established by United Nations Global Compact and UN Women in 2010, the WEPs are informed by international labour and human rights standards and grounded in the recognition that businesses have a stake in, and a responsibility for, gender equality and women’s empowerment. Borsa Istanbul is one of the signatories.

Non-Financial Reporting

As the subject become more and more popular, sustainability-related reports are now widely used.

In addition to its successful projects realized in line with the Sustainable Development Goals put forward by the UN, sustainability-related practices in different areas, social responsibility strategy and how these are integrated into corporate business procedures were made public through Borsa Istanbul Sustainability Reports between the years 2014 and 2016.

Since 2017, no separate sustainability report has been published. ESG performance and goals have been disclosed through annual reports. In these reports written in line with the International Integrated Reporting Framework (<IR Framework>), Borsa İstanbul's sustainable business model and the value it creates for its stakeholders have been explained with an integrated approach. Borsa İstanbul's strategic response to external factors and risks affecting capital markets is described from a long-term perspective, and the activities carried out during the year are presented with a materiality perspective. 

Sustainability Committee

Sustainability Committee was established in 2015 with the aim of implementing sustainability practices in a holistic and effective manner, monitoring the sustainability strategy and performance, and integrating sustainability into decision-making mechanisms and business models in Borsa Istanbul. The committee is composed of several departments’ heads and led by an Executive Vice President.

Sustainability Platform

Sustainability Platform has been established under the leadership of Borsa İstanbul. This is an open platform for the actors in financial sector to discuss sustainability-related practices, potential ways of cooperation.

Apart from Borsa İstanbul, NGOs, international organizations and regulatory bodies can become member. Private sector organizations are not authorized to become member, but to attend meetings.

In 2019 and 2020, with the authorization given by the Presidential Office's Investment Environment Improvement Coordination Board, platform members cooperated for the development of sustainable finance in Türkiye. The Sustainability Principles Compliance Outline, a tangible product of these efforts, was published in 2020 by the Capital Markets Board of Türkiye and became a part of national legislation.

For your questions about the platform, you can email to surdurulebilirlik@borsaistanbul.com

Environmental Policy and Environment Management

Environment Policy of Borsa Istanbul, a financial service company, is designed to contribute to protecting the environment in all business processes, in line with its sensitivity to sustainability and its holistic sustainability approach.

Environment has a very important place in the Sustainable Development Goals: Goal 6 is Clean Water, Goal 14 is Life in Water, and Goal 15 is Terrestrial Life. Environment management is handled within the scope of these purposes at Borsa Istanbul.

Issues related to the compliance of Borsa İstanbul with environmental regulations, preparation, execution, follow-up, inspection and review of the environmental policy of Borsa İstanbul, which has a campus in İstinye that hosts a large number of trees and plants of different species, are regulated by Environmental Management System Directive.

Please feel free to contact with Environment Officer for any questions, comments, suggestions or complaints you may have about Borsa İstanbul’s environmental management activities:

Ms. Sibel Kılıçsoy Öztürk

Support Services Department

sibel.kilicsoy@borsaistanbul.com

T: +90 212 298 21 61

Borsa İstanbul Schools, which started to be built in 1998, are among the most important contributions to education in our country.

National Physical Contribution to Education Project (EFİKAP) was initiated in 1997. The project was financed by Borsa Istanbul Education Fund (valued 32 million TL), for the construction of 46 schools in the first place. Throughout time, it has become a giant project in which more than 400 school buildings have been built/supported by the end of 2021.

Within the scope of the project, it was aimed to extend schooling, especially in the Eastern and Southeastern parts. In this context, Borsa İstanbul has contributed to the improvement of education in many provinces by financing the construction of school buildings.

Within the scope of the project, not only school buildings, but also administrative buildings, dormitories, lodgings, sports and cultural centers have been financed.

The project is directly related to "Quality Education", which is one of the Sustainable Development Goals. It aims to provide equal opportunities in education in provinces that do not have sufficient opportunities. Another contribution of the project was that it provided opportunities for the people who want to learn a profession. During the summer months and weekends when formal education is not available, training and handicraft courses were provided in these schools. Thus, adults who graduated from these courses were also given the opportunity to participate in business life.

The initial fund worth of 32 million TL, was allocated from Borsa İstanbul inner resources at the beginning of the project. The fund has always been managed by Borsa Istanbul. By the end of 2021, more than 400 educational institution buildings have been built. Approximately 800 thousand pupils have been benefitted.

Committed to contributing to cultural development since its establishment, Borsa İstanbul has more than 400 artistic works within its premises.