Moscow Exchange and the Russian Union of Industrialists and Entrepreneurs to calculate sustainability indices daily
On 11 March 2019, as part of the 2019 Week of Russian Business, a partnership agreement was signed between Moscow Exchange and the Russian Union of Industrialists and Entrepreneurs (RSPP). Present at the official signing were Moscow Exchange CEO Alexander Afanasiev and RSPP President Alexander Shokhin.
Under the agreement, from April 1 2019 the parties will publish a daily calculation of the sustainability indices "Responsibility and Transparency" and "Vector of Sustainability" which have been calculated by Moscow Exchange since 2016 on the basis of an assessment carried out annually by the RSPP of the largest Russian companies in terms of their ESG activity. The basis for the calculation of the indices includes the securities of issuers that disclose the most complete information about their activity in the fields of sustainability and corporate social responsibility.
Alexander Afanasiev commented: "More and more investors evaluate companies not only in terms of financial performance, but also corporate social responsibility, attitude to environmental issues, social policy and quality of corporate governance. Demand from investors for sustainability indices are a testament to the development of the Russian market and we are pleased to offer these new benchmarks together with the RSPP."
At present, 22 companies that lead the way in terms of ESG disclosure are included in the Responsibility and Transparency index. The Vector of Sustainability index includes 15 that show the best progress in terms of ESG compared to the previous year. The composition of the index is reviewed annually. Index values will be published on the websites of the Moscow Exchange and RSPP, as well as broadcast through news agencies on a daily basis. Historical index data will also be available starting from 2012.
The agreement also allows for collaboration in support of sustainable development of Russian business and increasing its investment attractiveness, promoting transparency of economic activities, strengthening investor confidence in Russian public companies as well as providing information support to investors in making decisions related to sustainability.