How does the exchange view sustainable development within its core business?
We seek to develop the financial and capital markets in Brazil. Within this objective, the exchange adopted a business model in which we operate within economic, social, environmental practices and good corporate governance. In the stock market, the exchange is a source of credit and funding for businesses and market agents. Our vertically integrated business model, with collateral mechanisms and risk management, offers a more secure trading environment to the market. Through our market popularisation programmes and financial education, we help investors to take more conscience investment decisions. Regarding good corporate practices, the Novo Mercado is regarded as a model for other exchanges. This exchange listing segment is for companies that commit themselves voluntarily to adopt additional corporate governance practices than those required by Brazilian law. In addition, the exchange also has the Corporate Sustainability Index, which aims to track the return of a portfolio composed of stocks of companies that have a recognised commitment to social responsibility and corporate sustainability. Another innovation by the Exchange is the Carbon Efficient Index (ICO2), which is being developed by BM&FBovespa and the Banco Nacional de Desenvolvimento Econômico e Social (BNDES) and will be launched in November. This Index will be an economic incentive for companies to adopt environmental practices aimed at reducing GHG emissions. The ICO2 will be based on the IBrX-50, an index composed by the 50 most traded stocks at BM&FBovespa, weighed by the market value of the free float. The weight of each share in the new index will be based on the company’s participation in the IBrX-50 and also its efficiency in GHG emissions. The lower the ratio between GHG emissions and the company’s revenue, the greater its efficiency.
 
BM&FBovespa is the fourth largest exchange in the world by market value, and the largest in Latin America. Does this increase its responsibility in sustainability?
Being the world’s fourth largest stock exchange by market value increases the responsibility both locally and globally. As a company, it aims to promote best practices in business. The exchange is a signatory of the Global Compact, an initiative of the United Nations which enables the private sector, together with UN agencies and social entities, to contribute to advancing the practice of corporate social responsibility, thus building a more just and sustainable global economy.  We were the first stock exchange in the world to join in April 2004. We were also the second exchange in the world, and the first in the Americas, to produce its annual report in accordance to the Global Reporting Initiative (GRI), a worldwide standard that determines the best criteria for sustainability reporting. We also have a Social and Environmental Stock Market (BVS&A) that aims to boost projects undertaken by Brazilian NGOs, especially those that promote social and environmental development in Brazil. Its main objective is to supports transparent and reliable projects.  By launching this project, recognised by UNESCO and adopted as a case study by the Global Compact and replicated in 2006 in South Africa, BM&FBovespa has innovated not only the ways through which NGOs can raise funds but also the concepts of Social Environmental Investor, Social Environmental Action and Social Environmental Profit. I would also highlight BM&FBovespa’s participation in the World Federation of Exchanges debates on sustainability. We are advancing considerably in this topic. Another important point worth mentioning is the fact that we have committed ourselves to the Principles for Responsible Investment (PRI), a UN initiative that sets forth six basic principles on the best socioeconomic and environmental practices.

What are the main policies of social inclusion and improved quality of life?
We have the BM&FBovespa Institute, which was created in 2007 as a nonprofit association, to integrate and coordinate the social and environmental responsibility projects of the exchange. It works to promote sustainable development in Brazil, focusing on the social and economic inclusion of the population, environmental preservation, and the strengthening of civil society. Special attention is devoted to education, especially of children and teens; we believe that this is the best way to encourage social and economic changes necessary to build a society where there is greater respect for human rights and better living conditions for everyone. Since 1996, BM&FBovespa’s Professional Association, which is part of the Institute, promotes the integration of young people, strengthening their self-esteem, rescuing their ethical values and raising their awareness about their rights and duties as citizens. This is done through professional training programs for young people aged between 15 and 20 years who are enrolled in regular school and have a family income of up to three minimum wages. Another initiative is the BM&FBovespa Athletics Club that trains promising young Brazilian Athletes. The Club has won eight times the Brazil Athletics Trophy and now has over 100 athletes in various competitions of track and field, such as running, long and high jump; it also has coaches, assistants, doctors, and physiotherapists. Some of Brazil’s top athletes are members of the Club, as Marilson Gomes dos Santos, who won twice the New York City Marathon; marathon runner Vanderlei Cordeiro de Lima, bronze medal in the Athens Olympics in 2004; and Fabiana Murer, world champion Indoor Pole Vault in Doha, Qatar in 2010.

What does the exchange offer within the concept of sustainable products, which directly or indirectly contribute to the sustainability of the planet?
In addition to the ISE Index and the Carbon Efficient Index, which I have already mentioned, in 2010, we carried out the third carbon credit auction held at the exchange, and the first aimed at the voluntary carbon market in Brazil. The previous auctions, held in 2007 and 2008, offered certified emission reductions (CERs) held the City of São Paulo.

What are some key initiatives for your targeted public?
This year, we created a department that specifically addresses sustainability. With this, we are reinforcing the concepts of social environmental responsibility for our clients. It all starts within your own company. It’s no use being sustainable if our employees and clients and are not in tune with our practices. We are developing a series of initiatives with our clients in order to develop the best practices of sustainability. We focus on the 470 listed companies, brokerage houses and other market participants.

Edemir Pinto
Born on June 4, 1953, Mr Pinto is an economist. He joined the Brazilian Mercantile & Futures Exchange (BM&F) in January 1986. In July 1987, Mr Pinto became Derivatives Clearinghouse Officer and was responsible for risk management, settlement, participant registration, collateral, custody, and controllership. In 1999, he was named Chief Executive Officer of BM&F and in 2002 also became CEO of the Brazilian Commodities Exchange. Mr Pinto was also member of BM&F’s Board of Directors until 2007. On May 8th, 2008, the Extraordinary Shareholders’ Meeting approved the integration between BM&F S.A. and Bovespa Holding, creating the world’s third largest exchange in terms of market value, BM&FBovespa S.A. During this period, Mr Pinto served as Co-CEO and Chief Financial Officer of the new company. On May 20th, 2008, BM&FBovespa’s Board of Directors named Mr Pinto as the company’s Chief Executive Officer.