S&P Dow Jones Indices and the Lima Stock Exchange have announced the launch of the S&P/BVL Peru General ESG Index.

The index selects and weight its constituents from the S&P/BVL Peru General Index, Peru’s headline stock index. S&P say the objective is to provide a best-in-class ESG benchmark of the Peruvian equities market. At launch, the S&P/BVL Peru General Index will have 15 constituents.

Companies involved in controversial weapons, tobacco, thermal coal, and companies with disqualifying United Nations Global Compact scores are excluded from the index with eligible companies selected based on their S&P DJI ESG score.

“ESG has asserted itself as an essential strategy for the mainstream investor,” said Jaspreet Duhra, Managing Director and Global Head of ESG Indices at S&P DJI. “We are thrilled to work with the Lima Stock Exchange to continue expanding our ESG presence in Latin America with the launch of the S&P/BVL Peru General ESG Index. This new index will be a useful tool for investors and companies recognizing the importance and relevance of corporate sustainability data and principles and aims to spur increased engagement from companies through greater transparency and implementation of sustainable business practices.”