Santiago Exchange And S&P Dow Jones Indices Launch first Chilean Sustainability Index; Agree to Explore Broader Indexing Agreement

Dow Jones Sustainability™ Chile Index is the first of its kind in Chile…

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Bolsa de Santiago and S&P Dow Jones Indices has announced today the launch of the first sustainability index in Chile. The Dow Jones Sustainability Chile Index  is the first of its kind in Chile using the Dow Jones Sustainability Indices’ methodology and the first to use the Santiago Exchange’s blue chip IPSA Index (Indice de Precios Selectivo de Acciones) as the underlying universe.

The Dow Jones Sustainability Chile Index consists of 12 companies that fulfill certain sustainability criteria better than the majority of their peers within a given industry. The key factor in selecting constituents for any DJSI-branded index is a company’s Total Sustainability Score (TSS), calculated using RobecoSAM’s annual Corporate Sustainability Assessment (CSA).

According to the calculation methodology, the Index is comprised of 12 out of the 40 companies currently included within the IPSA Index. In 2016, the Dow Jones Sustainability Chile Index is intended to incorporate new companies once the studied universe of Santiago Exchange issuers broadens from the 40 companies that compose the IPSA Index to the 60 most traded companies — allowing more companies to have the opportunity to be part of the sustainability index for the Chilean market.

Currently, the 12 Dow Jones Sustainability Chile Index constituents are: AES Gener S.A., Aguas Andinas S.A., Banco de Crédito e Inversiones, Banco Santander Chile, Cencosud S.A., CorpBanca S.A., Empresas CMPC S.A., Inversiones Aguas Metropolitanas S.A., LATAM Airlines Group S.A., SACI Falabella, Sigdo Koppers S.A., Viña Concha y Toro S.A.

“Via this index, the Santiago Exchange seeks to maintain its leadership position in promoting responsible investment,” says José Antonio Martínez, CEO of Santiago Exchange. “The companies within the Dow Jones Sustainability Chile Index have not only incorporated sustainable processes into their business, but are also creating value for their shareholders.”

“It’s very important for the capital market to encourage the transparency of its listed companies and their commitment to environmental, social and corporate governance issues,” continues Martínez. “By doing so, investors will have better information about what companies are doing and subsequently can make more sustainable investment decisions over time.”

Source: ETFWorld.com