CES-FGV designed a questionnaire to verify the performance of the companies which issued BOVESPA's 150 most liquid stocks, which considers the “ triple bottom line ” concept (developed by the English consulting company SustainAbility ). The TBL concept involves the integrated analysis of environmental, social and economical aspects. Specifically in ISE questionnaire, to these three TBL principles were aggregated three more: a) general criteria (which inquires, for example, the company’s commitment to global compacts and if the company publishes social balances); b) nature of the product criteria (which inquires if the company publishes social balances, if the company's product causes damages and risks to consumers health, among other issues); and c) corporate governance criteria. The environmental, social and economical dimensions were divided in four groups of criteria: a) polices (commitment indicators); b) management (program, target and monitoring indicators); c) performance; and d) legal compliance. With regard to the environmental dimension, companies from the financial sector answer to a differentiated questionnaire, and the other companies are divided in “high impact” and “medium impact” (they receive the same questionnaire, but the weightings are different). The fulfilling of the questionnaire is voluntary (the questions are objective), and demonstrates the company commitment with sustainability aspects, which are considered increasingly important all over the world.
Criteria for Inclusion in the Portfolio
The index portfolio will include the stocks that meet cumulatively the following criteria: a) to be among the 150 best classified stocks considering the negotiability index, measured in the twelve months preceding the beginning of the reevaluation process;b) to have a trading session presence of at least 50%, measured in the twelve months preceding the beginning of the reevaluation process;c) to meet the sustainability criteria approved by ISE Board. Companies that are under composition with creditors, have filed for bankruptcy, are under a special regime or were/are subject to a trading halt of its security over an extended period of time will not integrate ISE.