The new composition of the Bovespa's Corporate Sustainability Index (ISE) portfolio, which came into effect on December 1 and remain in force until November 30, 2009, will be remembered for two events: the exclusion of Petrobras and the welcome premiere of the telecom segment. Harshly criticized by environmentalists, the state-controlled company had its shares excluded from the selection of companies with best management of economic, environmental and social risks. Up until then, Petrobras ordinary registered shares (ONs) and preferred registered shares (PNs) comprised 25% of the ISE.

On the other hand, the good news is that Telemar and TIM have become the first representatives of the telecom sector to participate in the ISE. “There is strong pressure for telecom operators to be completely sustainable”, says Roberto Gonzalez, member of ISE's deliberative council and advisor for sustainability matters at the Association of Capital Market Analysts and Investment Professionals (Apimec Nacional). Because of its European controllers, the Italian company TIM is even more subject to such pressure, according to Gonzalez.

It's interesting to observe that the fourth generation of ISE companies was sifted through a finer sieve. In the first year, the companies were not even required to present documents to prove their sustainability policies. In the second year, verification of this paperwork began to be carried out only after disclosure of the portfolio. This time, only companies that provided proof of their practices were selected for ISE. According to Gonzalez, maybe this explains why companies such as Petrobras and Aracruz were re-confirmed in September in the Dow Jones sustainability index and removed from ISE.