15:00 | 12/04/2017 Finance - Banking
(VEN) - The Ho Chi Minh Stock Exchange (HOSE) recently introduced the Vietnam Sustainability Index (VNSI) to market participants and investors. The VNSI is expected to be launched in July 2017 and will include companies with the highest scores in terms of their environmental, social and governance-related performance.
Through the index, HOSE hopes to promote the application of sustainable development initiatives in the listed firms. Building the VNSI is one of the tasks involved in the development of financial products to implement the Vietnam National Green Growth Strategy by 2020.
The VNSI was compiled by the HOSE, the German Cooperation Agency (GIZ) and the State Securities Commission of Vietnam. Its 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 participants and financial organizations.
Le Hai Tra, the deputy general director of HOSE, said large-scale businesses in the world implement various such sustainable development programs, which benefit them and society.
Thus, for example, corporate environmental responsibility helps companies avoid environmental disasters. Corporate social responsibility – firms carrying out charitable projects, for example - has proven popular with employees and customers. Moreover, companies with good corporate governance – for example, those with information transparency - are known to attract shareholders and other investors.
Companies included in the annual index published in July of each year will be listed on the VN100, but not all will be eligible. Companies with substantial revenues from sectors such as tobacco, nuclear energy, weapons, bombs, mines; gambling and alcoholic beverages will not be considered for the sustainable development index.
Tra also said that the stock market’s sustainable development is an increasing concern for investors, especially responsible investors and organizations. Through the VNSI, HOSE expects to create a new measure for the stock market, establish a list of quality companies and promote sustainable development initiatives in the listed firms to help them meet the increasingly stringent requirements of international economic integration.