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12/02/2019

B3 Announces the 15th ISE – Corporate Sustainability Index Portfolio


São Paulo, December 2th, 2019 - B3 announced today the release of the 15th Corporate Sustainability Index (ISE B3) portfolio, effective from January 6, 2020 to January 1st, 2021. The new ISE B3 portfolio comprises 36 stocks from 30 companies. The companies are drawn from 15 industry sectors and together account for a  market capitalization of BRL1.64 trillion, 37.62% of the combined figure for all the  companies whose stocks are traded on B3, based on the November 26, 2019 closing.

For the ISE B3 annual portfolio process announced today, 178 companies with the 200 most liquid equities on B3 were invited. Of these, 46 signed up for the process in three categories: 36 as Eligible (one of them also in the Simulated category), 7 of them in the Simulated category only and 3 as Trainee. In the previous year, 36 companies signed up, of which 33 as Eligible (2 also in the Simulated category and 3 as Trainee.

New Portfolio – 2020

AES Tiete BRF Duratex Fleury Lojas Americanas Petrobras Distribuidora
B2W CCR Ecorodovias        Itaú Unibanco   Lojas Renner Santander
Banco do Brasil Cemig                EDP  Itaúsa Movida Telefonica
Bradesco Cielo Eletrobras Klabin MRV TIM
Braskem Copel  Engie Light Natura Weg

 

 

Current Portfolio – 2019 (valid until January 3, 2020)*

AES Tiete CCR Ecorodovias Itaú Unibanco Lojas Renner TIM
B2W Cemig              EDP Itaúsa MRV Weg             
Banco do Brasil Cielo Eletrobras Klabin Natura  
Bradesco Copel Engie Light Santander  
Braskem Duratex Fleury Lojas Americanas Telefonica  

 

*Portfolio updated on November 21, 2019

Since its inception in 2005, the ISE B3 has gained +266.19% against +235.43% for Ibovespa (based on November 26, 2019 closing). In the same period, the ISE B3 was also less volatile: 23.86% compared to 26.51% for Ibovespa.

The 2019/2020 portfolio process included the technical partnership with ABC Associados, external assurance by KPMG, and press monitoring partnership with the PR company Imagem Corporativa. The 2019/2020 ISE B3 was awarded "Limited Assurance No Reservations" status by KPMG.

The publication of the  responses to the evaluation questionnaire has been a prerequisite for companies to join the ISE B3 since 2017 The responses given by the 30 companies of the 2020 portfolio will be available as of December 2 at. www.iseb3.com.br.

X-RAY OF THE ISE B3 2020 PORTFOLIO

  • 98% of companies state they that use the 2030 Agenda and SDGs as benchmarks to identify and integrate relevant sustainability aspects into their business (2019: 100%), and 93% state that they have conducted a materiality analysis to identify priority SDGs (2019: 93%).
  • 91% of companies have set and ongoing processes to integrate SDGs into their strategies, goals and desired results (2019: 83%).

5 most prioritized* SDGs by companies in the 2020 portfolio

  • SDG 7 (affordable and clean energy): 69% (2019: 63%)
  • SDG 8 (productive employment and economic growth): 76% (2019: 76%)
  • SDG 9 (industry, innovation and infrastructure): 89% (2019: 85%)
  • SDG 11 (sustainable cities and communities): 65% (2019: 61%)
  • SDG 13 (combating climate change): 70% (2019: 70%)

5 least prioritized* SDGs by companies in the 2020 portfolio  

  • SDG 5 (gender equality): 56% (2019: 54%)
  • SDG 6 (clean water and sanitation): 65% (2019: 59%)
  • SDG 10 (reduced inequalities): 69% (2019: 61%)
  • SDG 14 (life below water): 57% (2019: 63%)
  • SDG 17 (partnership for global development): 67% (2019: 56%)

 *Prioritization is related to the impacts of the company's activity on SDGs. Not to be confused with the importance the company places on each theme.
 

  • 94% of companies state that they review and define their business models based on their positive and negative externalities, predicting short-, medium- and long- term adjustments (2019: 67%).
  • 46% of companies have structured LGBTQIA+ rights guarantee programs in place (2019: 26%).
  • Regarding corporate policies approved by the Board of Directors to provide equal access conditions for groups:
    • 37% of companies promote policies for women (2019: 37%)
    • 27% of companies promote policies for black people (2019: 27%)
 
  • 27% of companies, when recruiting managers, incorporate criteria and aspects related to their conduct and knowledge of social and environmental aspects (2019: 25%).
  •  20% of companies incorporate their commitment to Sustainable Development into their Bylaws or Articles of Incorporation (new question).
  •  100% of companies state that their internal audits also focus on non-financial matters and monitor them (new question).

About ISE B3
B3’s Corporate Sustainability Index (ISE B3) was created in 2005, being the fourth of its kind in the world. Companies that have the 200 most liquid equities on B3 are invited to join the process. ISE B3’s fund option for the investor with an awareness of this agenda is the ETF ISUS11, which was first listed on October 31, 2011.

ISE B3’s highest level of corporate governance is the ISE Advisory Board (CISE), which is presided over by B3 and is made up of more than 9 bodies: the Association of Capital Markets Analysts and Investment Professionals (Apimec) – CISE Vice President, the Brazilian Association of Pension Funds (Abrapp); the Brazilian Financial and Capital Markets Association (Anbima), the Group of Institutes, Foundations and Enterprises (GIFE); the Brazilian Institute of Independent Auditors (IBRACON), Brazilian Institute of Corporate Governance (IBGC), the Ethos Institute for Business and Social Responsibility, the International Finance Corporation (IFC), and the United Nations Environment Programme (UNEPFI).

For further information, visit www.iseb3.com.br

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