Corporate Social Responsibility, sustainability, and environmental, social, and governance (ESG) are all becoming increasingly popular in the financial sector. At this moment, we can argue that it now plays a larger role in ensuring the long-term viability of its exchanges.The fact that the Borsa Istanbul Sustainability Index has started to be published is one of the important reflections of this situation in our country. The BIST Sustainability Index was created in 2014 in order to increase interest, dec and knowledge about compliance and sustainability with ESG criteria among Borsa Istanbul Companies and to measure the sustainability performance of companies. In addition to providing the opportunity to compare companies by measuring their sustainability performance, the index has emerged as an important investment tool for responsible investors.
In 2014 and 2020, it has created sustainability guidelines for companies in order to provide information about sustainability to companies. the report published in 2020 underlined the benefits of adapting to ESG criteria for companies. Companies achieve advantages such as providing an advantage in accessing financial resources, strengthening brand value and increasing the capacity to manage future risks by complying with ESG criteria. It is precisely at this point that it is necessary to dwell on the particular attention paid to environmental governance. It is thought that companies with good environmental governance will find it easier to finance in the future in order to manage the climate crisis. In addition, the report also foresees that steps such as water saving, recycling and low energy consumption taken to ensure sustainability reduce costs.
BIST has been issuing sustainability index reports since 2014, in addition to improving company knowledge of sustainability. These reports measure a company's social, environmental, and governance performance in addition to its financial performance. As a result, it adds to the evaluation of firms' sustainability policies and remains a significant investment instrument.
Author:
İrem Derya
Source:
Borsa İstanbul- Borsa İstanbul’da Sürdürülebilirlik
Borsa İstanbul- Şirketler İçin Sürdürülebilirlik Rehberi 2020 (https://www.borsaistanbul.com/files/Surdurulebilirlik_Rehberi_2020.pdf )
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