S&P Dow Jones Indices and Latin American exchange Brasil, Bolsa, Balcão (B3) announced today the launch of the S&P/B3 Brazil ESG Index, aiming to provide investors with core exposure to the Brazilian equities market while providing a significant boost in ESG performance.
Reid Steadman, Managing Director and Global Head of ESG Indices at S&P DJI, said:
“In the last year, ESG has joined the mainstream of investing as market participants increasingly see the importance and relevance of indices that incorporate sustainability data and principles. We have designed the S&P/B3 Brazil ESG index with the goal of enabling these investors to achieve their ESG investment goals while attaining performance largely in line with the market. We’re thrilled to work with the B3 to bring this strategy to the Brazilian market.”
The new index uses a rules-based selection criteria based on relevant ESG principles to select and weight its constituents from the S&P Brazil BMI (Broad Market Index) that are locally listed on the B3. Eligible companies are weighted in the index by their S&P DJI ESG Score resulting from the Corporate Sustainability Assessment (CSA). The index excludes companies involved in controversial weapons, tobacco, thermal coal and those with disqualifying United Nations Global Compact scores. Companies with no S&P DJI ESG Score are also excluded.
Gleice Donini, B3’s Head of Sustainability, said:
“At a time when ESG is becoming increasingly relevant for investors worldwide, B3 is bringing a new index to the market to add to its portfolio of sustainable benchmarks and provide investors with yet another alternative in this segment.”