Sustainability reporting has evolved significantly in recent years. Stock exchanges are increasingly implementing initiatives incentivizing better corporate disclosure and assessing environmental, social and governance (ESG) standards. In Brazil, where sustainability is part of the government agenda, the Corporate Sustainability Index (ISE) of BM&FBOVESPA the country's stock exchange is an integral part of Brazil's large and growing market.

The BM&FBOVESPA has become one of the biggest stock exchanges in the world, listing of some of the largest companies, such as Vale and Ambev and two key BCtA member companies, Natura and Itaú. Last July, the BM&FBOVESPA announced an ambitious plan to attract 200 new companies, which will be listed in the next five years. That represents a nearly 50 percent increase from the 450 companies currently listed.

The Business Call to Action (BCtA) is pleased to have contributed to the ISE's review of their standards for Brazilian companies and to have brought attention to the usefulness of inclusive business criteria in assessing sustainability efforts. By adopting BCtA's inclusive business criteria, the ISE is signaling to the market that inclusive business matters and is here to stay.

In a process supported by CES-FGV (FGV's Center for Sustainability Studies) and through a multistakeholder consultation, the index requires a review of annual questionnaires. For the first time, with our colleague Gustavo Pimentel on the ground in Brazil, the BCtA was able to participate in the 2013 review process and proposed adding criteria related to inclusive business practices. The suggestion led to the creation of Question 7.1 on the Economic questionnaire, which utilizes key BCtA inclusive business definitions. Based on responses to these questions, companies will be deemed eligible to join the index, in a competitive process that ultimately selects only the top 40 firms.

This is notable as this is among the first examples of incorporation of inclusive business indicators that have been embedded and taken into account for a national ESG survey. BCtA expects this effort to influence corporate sustainability policy, as both Brazilian listed and non-listed companies use the ISE questionnaire for guidance on sustainability strategy and management, along with the Global Reporting Initiative guidelines. Data from a recent IFC 5-year review claims that the ISE is the most important factor in shaping Brazilian companies sustainable management practices. For example, “64% of group 1 companies (always listed on the Index) stated theISEwas the most important factor in developing sustainable practices over the past five years"; and TheISE questionnaire has been a very valuable roadmap for our sustainability strategy and we hope that one day we will qualify.

BCtA continues its efforts in mainstreaming the momentum of the Inclusive Business (IB) landscape and influence standard setting for the private sector and inclusive business. We are confident that these efforts can be replicated in other countries and look forward to creating new frontiers for inclusive business.

For more about this initiative and ISE's methodology, download the information sheet.

DIMENSION: ECONOMIC (see 7.1)

ECO 7.1. Are processes and procedures in place for managing corporate opportunities that consider environmental aspects of the short, medium and long term? (P) This question refers to a systematic process to discover innovative alternatives that preserve or generate value for the company, for the environment and society. The management of opportunities means that there are mechanisms for capturing, company registration, evaluation (as to potential impacts, and risks), and monitoring to identify and manage opportunities. Eco-efficiency initiatives, innovation in products and services, as well as the development of strategic partnerships to preserve and generate sustainable value, are examples of management opportunities. (GRI) EC2 and Understanding indicators _ Yes _ No

(D) Official company Document describing the processes and procedures and sample application.

ECO 7.2. If Yes for question 7, do these processes and procedures include opportunities for generation of Inclusive Business and/or Green Business”?

There are processes and procedures in place for managing corporate opportunities that consider environmental-environmental aspects of short, medium and long term? (P) this question refers to a systematic process to discover innovative alternatives that preserve or generate value for the company, for the environment and society. The management of opportunities means that there are mechanisms for capturing, company registration, evaluation (as to potential impacts, and risks), and monitoring to identify and manage opportunities. Eco-efficiency initiatives, innovation in products and services, as well as the development of strategic partnerships to preserve and generate sustainable value, are examples of management opportunities. (GRI) EC2 and Understanding indicators _ Yes _ No

(D) Official company Document describing the processes and procedures and sample application.

Stage of InitiativeFocus of Initiative Pilot Roll out Expansion No N/A Inclusive Business Green Business

Document or URL describing the business model and social impact.

(D) Documento ou página na internet que descreva as iniciativas, com respectivo modelo de negÃcio e descrição do impacto positivo na base da pirâmide.