OREANDA-NEWS. February 27, 2012. For the second year in a row, BM&FBOVESPA’s Annual Report contains information about the company’s economic, financial, social and environmental dimensions, in the same publication. It was released to the market on February 14, on the eve of the Exchange’s APIMEC meeting with analysts, investors and journalists, for the presentation of the 2011 results. The decision to publish a report with both financial and non-financial information is based on the understanding that these dimensions are linked and should be communicated to the market simultaneously, encouraging analysts and investors to include socio-environmental and corporate governance questions when assessing share prices and making investment decisions.

The BM&FBOVESPA Annual Report follows the level 3 self-declared Global Reporting Initiative (GRI) model, the international standard for the publication of sustainability reports. The integrated report innovates by making sustainability information simultaneously available. Normally it is presented three to four months after the meeting held with analysts and investors for the presentation of financial results.

Another BM&FBOVESPA initiative to encourage listed companies to publish their non-financial information was launched in December 2011, namely “Report or Explain” for sustainability reports or similar. This seeks a more transparent agenda for the entire market and specifically for investors, who increasingly demand this type of information. The initiative recommends that as of 2012, companies state in item 7.8 of the Reference Form (“Description of the company’s relevant long-term relationships not elsewhere described”) whether they publish a regular sustainability report and where it is available, or explain why not. The Exchange seeks to make the data bank available to the public at Rio + 20, the United Conference on Sustainable Development to be held in Rio de Janeiro in July.

BM&FBOVESPA’s complete 2011 Annual Report

The company has chosen to print a summarized version only. This contains the year’s main highlights, on certified paper and with vegetable oil based ink, seeking to minimize the environmental impact from publication.

Main Achievements in 2011

The annual report presents the main sustainability and social investment advances that BM&FBOVESPA obtained in 2011, including:

In January the Exchange launched the Corporate Governance Trade Index (IGCT), which assesses daily the performance of stocks issued by companies that voluntarily adopt differentiated corporate governance standards.

In February there was the launch of the Novo Valor website, created to report the Exchange’s sustainability actions and engage its publics.

In April, there was the launch of “Programa em Boa Companhia” (the “In Good Company Program” for continuous relationships between Exchange and companies) and the related “Novo Valor – Sustentabilidade nas Empresas: Como Comecar, Quem Envolver, O Que Priorizar” (New Value – Sustainability in Companies, How to Start, Who to Involve and What to Prioritize). The latter is a sustainability guide from the viewpoint of the capital markets, available in electronic version at http://www.bmfbovespa.com.br/novo-valor/en-us/index.asp. There was also the launch of the book “Associacao Profissionalizante: 15 anos promovendo a cidadania de jovens em risco social” (Job Training Association: 15 years of promoting good citizenship among the socially at-risk young), available on the Exchange website in portuguese.

In July and November, there were two more meetings of the em Boa Companhia program. In July it focused on sustainability in small and midsize firms, and in November on creating sustainable value, which deepened discussions about the relationship between sustainability, transparency and creating value in companies. The November event was impacted by the announcement of the seventh ISE Portfolio two days previously.

In July, the Exchange published the ISE Questionnaire for the 2012 portfolio. The main development here was the inclusion of a new question in the Transparency Criteria area, encouraging companies to authorize the publication of their answers.

In August the BM&FBOVESPA Athletics Club launched the “Categoria de Base” program aimed at children from 6 to 11 years old, who will train at the Exchange’s social project in Paraisopolis (SP). The program is also aimed at young people aged 12 to 18, at four locations across the country.

In November there was the start of trading in the IT Now ISE ETF that tracks the Corporate Sustainability Index (ISE), and the IT Now IGCT ETF that tracks the Corporate Governance Trade Index (IGCT).

In November the Exchange hosted a meeting of the board of the International Integrated Reporting Council (IIRC) - created in 2010 by the Global Reporting Initiative (GRI) and Accounting for Sustainability. IIRC seeks to create a financial, corporate governance and sustainability reporting model in companies. To mark the visit by the board, the Exchange held the seminar “New International Demands in Corporate Governance”, in partnership with GRI and the Brazilian Institute of Corporate Governance (IBGC).

In December the Exchange made its traditional Social Responsibility Day donation of part of the Exchange fees from stock buy orders (from one day’s trading) to all of the NGOs listed on the website of BM&FBOVESPA’s Socio-Environmental Investment Exchange (BVSA).