BM and FBOVESPA, Latin America’s leadingexchange in number of transactions and one of the world’slargest in market value, created the corporatesustainability index (ISE índice de sustentabilidadeempresarial) in 2005 with financial support from theInternational Finance Corporation (IFC). The ISE wasdesigned to create an efficient investment mechanism togroup companies with superior performance that manageenvironmental, social, and governance risks andopportunities. The ISE served as a reference guide forinitiation of sustainability practices as well as for theircontinuous improvement. The firms that have been in theindex (for some time or since its inception) report valuablebenefits in terms of improved sustainability practices,better reputation, and, to some extent, positive impacts ontheir stock price, access to capital, and liquidity in thestock market. The ISE supported a rapid move to sustainablepractices among listed firms, with most relatively largecompanies with liquid stocks eager to participate. Asexperience has been gained, the requirements for membershiphave been tightened, and fewer firms have been applying.IFC’s strategy in Brazil focuses on promoting access tofinance and developing capital markets to reach low-incomeindividuals, microenterprises, and small businesses. Formore publications on IFC Sustainability please visit www.ifc.org/sustainabilitypublications.
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