In the wake of Brazil’s corruption scandal, the country’s main stock exchange is preparing to launch a socially responsible investment index on December 1. The São Paulo-based Bovespa will use the tradeable index to track Brazil’s 40 most responsible companies.
In what is a first for Latin America, the ethical index will be based on Bovespa’s universe of 150 most liquid stocks. Inclusion will depend on a company’s performance against four core criteria: corporate responsibility policies, management structure, performance and legal compliance.