VN Sustainability Index (VNSI) will make debut in July to evaluate the sustainability performance of companies listed in the stock market of Vietnam.

A trading session at Maybank KimEng trading floor in HCM City

It will consider shares in VN 100, a capitalisation-weighted index that gathers the shares of two other indexes (VN30 and VNMidcap). 

VNSI is compiled by the HCM Stock Exchange (HOSE), the German cooperation agency GIZ, and the State Securities Commission of Vietnam, HOSE said on March 23.

Deputy CEO of HOSE Le Hai Tra said the stock market’s sustainable development is an increasing concern of investors. 

The new index’s 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, insiders and financial organisations.

Through VNSI, HOSE hopes to promote the application of sustainable development initiatives in the listed firms, he added.

Nguyen The Tuan from HOSE’s research and development division said businesses will be rated basing on their environment, society and governance-related performance. 

The environmental and social aspects cover each firm’s policies, commitments, relationships with employees and partners, compliance with law, emissions, among others. Meanwhile, the corporate governance aspect includes shareholders’ rights, treatment to shareholders, relevant parties’ responsibility, information transparency, and the role and responsibility of the board of directors.

Companies with the highest scores will be listed in VNSI.

VNA