LIMA, NOVEMBER 9, 2021: S&P Dow Jones Indices ("S&P DJI"), the world's leading index provider, and the Lima Stock Exchange ("BVL"), today announced the debut of the S&P/BVL Peru General ESG Index, the latest in S&P DJI's growing family of global ESG indices based on some of the world's most highly-tracked regional and country-specific benchmarks.
The first-of-its-kind index for the Peruvian market uses rules-based selection criteria using relevant ESG principles to select and weight its constituents from the S&P/BVL Peru General Index, Peru's headline stock index. The objective is to provide a best-in-class ESG benchmark of the Peruvian equities market to help promote sustainable business activities in the local market.
"ESG has asserted itself as an essential strategy for the mainstream investor," said Jaspreet Duhra, Managing Director and Global Head of ESG Indices at S&P DJI. "We are thrilled to work with the Lima Stock Exchange to continue expanding our ESG presence in Latin America with the launch of the S&P/BVL Peru General ESG Index. This new index will be a useful tool for investors and companies recognizing the importance and relevance of corporate sustainability data and principles and aims to spur increased engagement from companies through greater transparency and implementation of sustainable business practices."
"At the Lima Stock Exchange, we have made a commitment to lead the transformation of the domestic stock market ecosystem towards a more sustainable, inclusive and competitive one. With this new index, we are making tangible our commitment for the market to better internalize the relevance of indices that incorporate sustainability data and principles," said Miguel Ángel Zapatero, Managing Director of the Lima Stock Exchange.
Index Methodology
S&P/BVL Peru General ESG Index starts with all constituents in the S&P/BVL Peru General Index. Companies involved in controversial weapons, tobacco, thermal coal, and companies with disqualifying United Nations Global Compact scores are excluded.
Remaining eligible companies are then selected based on their S&P DJI ESG score resulting from S&P's Corporate Sustainability Assessment (CSA). Companies with S&P DJI ESG scores equal to or higher than the median score of the S&P/BVL Peru General Index as well as companies with a score between the median and 25% below as a proportion of the median score are selected for the index and are weighted by float-adjusted market cap.
