• FTSE4Good BIVA is the first index in Mexico with a global standard of companies that meet environmental, social and corporate governance requirements.
  • The index was designed to measure the performance of companies in Mexico that demonstrate strong sustainable practices.

Mexico City – FTSE Russell, a global leader in the creation, calculation and global distribution of indexes and Bolsa Institucional de Valores (BIVA) today announced the launch of the  FTSE4Good BIVA Index, with the aim of providing the Mexican market with investment alternatives in transcendental aspects such as environmental, social and corporate governance.

The FTSE4Good BIVA Index responds to the paradigm shift in the way investors now see beyond profitability and income statements, to pay attention to the impact their investments have on society. Similarly, it supports investors who seek to more easily identify sustainable companies.

This index was designed to measure the performance of companies in Mexico that demonstrate strong sustainable practices. To be included, companies must be part of the FTSE BIVA index, which ensures that they meet minimum size and liquidity criteria as well as FTSE4Good criteria, ensuring a minimum standard in their environmental, social, and corporate governance (ESG) practices.

Sustainable companies go beyond a short-term performance to offer added value to their shareholders by generating profits in the communities where they operate, improving their economic environment and integrating investors into the care and protection of their communities and the world.

“We’re very excited to expand on our local relationship with BIVA to offer more sustainable investment index approaches for Latin American investors,” said Jesus Togno, FTSE Russell Latin America Regional Director. “Applying our pioneering FTSE4Good sustainable investment methodology to our FTSE BIVA Index ensures investors have a reference point to gain efficient and transparent focus to sustainable companies in Mexico.”

María Ariza, CEO of BIVA, added: "Sustainability is no longer a fad. Today more than ever companies and investors want to have a positive impact on their communities through practices and actions that improve the quality of life of society, reduce its carbon footprint and have better governance practices so that, in the medium and long term, we have a better world to live in."

"Globally, companies are increasingly adding to this trend. In the end, those that fail to evolve will have trouble surviving, given that investors and consumers increasingly demand that companies, as well as their products and services, meet high standards of sustainability," said BIVA's director.

The FTSE4Good BIVA Index methodology is overseen by FTSE Russell's internal governance framework and supported by the FTSE Russell ESG Advisory Committee, composed of recognized global investment leaders and experts in environmental, social and corporate governance issues at the global level. This is a contribution from BIVA and FTSE Russell to the Mexican market to encourage sustainable investment and encourage companies to meet best practices on ESG issues, all in an endeavour to put Mexico on the map as a responsible investment leader.

Among the main features of the FTSE4Good BIVA Index are: 

  • Size and liquidity: The index is based on the FTSE BIVA Index which ensures that companies meet minimum size and liquidity criteria.
  • Inclusive: This index does not have a fixed number of securities. Any company within the FTSE BIVA that meets the sustainability criteria of FTSE4Good will be included in the index, which also includes FIBRAs.
  • Calculation: The FTSE4Good BIVA Index is calculated in real time and distributed through major financial media outlets such as Reuters and Bloomberg.
  • Availability: The index is calculated based on the price and total return methodologies, available at the end of the day.
  • Global Compatibility: The components of the index are segmented according to the Industry Classification Index (ICB), a global standard for industrial sector analysis.

 

Tim Benedict, LSEG/FTSE Russell, 1 917 582 0641; tbenedict@lseg.com / newsroom@lseg.com

Israel Alvarez Macias, BIVA, T. 5246-0100 ext. 279; M. (55) 4577-0826; www.biva.mx

%MCEPASTEBIN%

About FTSE Russell:

FTSE Russell is a leading global provider creating and managing a wide range of indexes, data and analytic solutions to meet client needs across asset classes, style and strategies. Covering 98% of the investable market, FTSE Russell indexes offer a true picture of global markets, combined with the specialist knowledge gained from developing local benchmarks around the world.

FTSE Russell index expertise and products are used extensively by institutional and retail investors globally. More than $15 trillion is currently benchmarked to FTSE Russell indexes. For over 30 years, leading asset owners, asset managers, ETF providers and investment banks have chosen FTSE Russell indexes to benchmark their investment performance and create investment funds, ETFs, structured products and index-based derivatives. FTSE Russell indexes also provide clients with tools for asset allocation, investment strategy analysis and risk management.

A core set of universal principles guides FTSE Russell index design and management: a transparent rules-based methodology is informed by independent committees of leading market participants. FTSE Russell is focused on index innovation and customer partnership applying the highest industry standards and embracing the IOSCO Principles. FTSE Russell is wholly owned by the London Stock Exchange Group.

For more information, visit www.ftserussell.com.

© 2020 London Stock Exchange Group plc and its applicable group undertakings (the “LSE Group”). The LSE Group includes (1) FTSE International Limited (“FTSE”), (2) Frank Russell Company (“Russell”), (3) FTSE Global Debt Capital Markets Inc. and FTSE Global Debt Capital Markets Limited (together, “FTSE Canada”), (4) MTSNext Limited (“MTSNext”), (5) Mergent, Inc. (“Mergent”), (6) FTSE Fixed Income LLC (“FTSE FI”) and (7) The Yield Book Inc. (“YB”). All rights reserved.

FTSE Russell® is a trading name of FTSE, Russell, FTSE Canada, MTS Next Limited, Mergent, FTSE FI and YB. “FTSE®”, “Russell®”, “FTSE Russell®”, “MTS®”, “FTSE4Good®”, “ICB®”, “Mergent®” , “WorldBIG®”, “USBIG®”, “EuroBIG®”, “AusBIG®”, “The Yield Book®”,  and all other trademarks and service marks used herein (whether registered or unregistered) are trademarks and/or service marks owned or licensed by the applicable member of the LSE Group or their respective licensors and are owned, or used under licence, by FTSE, Russell, MTSNext, FTSE Canada, Mergent,  FTSE FI or YB. FTSE International Limited is authorised and regulated by the Financial Conduct Authority as a benchmark administrator.