Sustainability Index to launch in July

March 25, 2017 | 11:19

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The VN Sustainability Index (VNSI) will make its debut in July to evaluate the sustainability performance of companies listed on the stock market of Viet Nam.

A trading session at Maybank KimEng trading floor in HCM City. - Photo VNA

It will consider shares on VN 100, a capitalisation-weighted index that constitutes the shares of two other indexes (VN30 and VNMidcap).

VNSI is compiled by HCM Stock Exchange (HOSE), German cooperation agency GIZ and State Securities Commission of Viet Nam, HOSE said on Thursday.

HOSE deputy general director Le Hai Tra said the stock market’s sustainable development was an increasing concern of investors.

The new index’s criteria are based on the OECD Principles of Corporate Governance, the GRI Standards, current regulations on information disclosure and corporate governance, and advice from prestigious experts, market insiders and financial organisations.

Through VNSI, HOSE hopes to promote the application of sustainable development initiatives in the listed firms, he added.

Nguyen The Tuan from HOSE’s Research and Development Division said businesses would be rated based on their environment, society and governance-related performance.

The environmental and social aspects cover each firm’s policies, commitments, relationships with employees and partners, and compliance with law and emissions, among others.

Meanwhile, the corporate governance aspect includes shareholders’ rights, treatment to shareholders, relevant parties’ responsibility, information transparency, and the role and responsibility of the board of directors.

Companies with the highest scores will be listed on VNSI.

VNS

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional