• GPW has published the eleventh edition of the RESPECT Index portfolio
• The Index has a record-high number of 28 participating companies, including three new members
• The RESPECT Index has gained 85 percent since its first publication in 2009

The Warsaw Stock Exchange (GPW) has announced the new portfolio of RESPECT Index, the social responsibility index. Following a review carried out by Deloitte, the index portfolio in its eleventh edition has 28 participating companies, including three new members: Agora, Inter Cars and mBank, as well as two returns: Bank Ochrony Środowiska and Jastrzębska Spółka Węglowa.  This year’s number of members of the RESPECT Index is the highest ever.

“There can be no doubt: Polish public companies increasingly understand the relevance of not only financial but also environmental, social, and employee-related factors. As a conservative environmentalist, I am glad that issuers listed on GPW broadly undertake sustainable development initiatives. The Exchange is the perfect place to match supply and demand. The RESPECT Index has gained 85 percent in the last eight years, which is clear proof that socially responsible companies are really valuable,” said Marek Dietl, President of the Management Board of the Warsaw Stock Exchange.

This year’s edition of the index includes 28 companies (in the alphabetical order):

•    Agora S.A.
•    Apator S.A.
•    Bank Handlowy w Warszawie S.A.
•    Bank Millennium S.A.
•    Bank Ochrony Środowiska S.A.
•    Bank Pekao S.A.
•    Bank Zachodni WBK S.A.
•    Budimex S.A.
•    Elektrobudowa S.A.
•    Energa S.A.
•    Fabryki Mebli „FORTE” S.A.
•    Giełda Papierów Wartościowych w Warszawie S.A.
•    Grupa Azoty S.A.
•    Grupa LOTOS S.A.
•    ING Bank Śląski S.A.
•    Inter Cars S.A.
•    Jastrzębska Spółka Węglowa S.A.
•    KGHM Polska Miedź S.A.
•    Lubelski Węgiel Bogdanka S.A.
•    mBank S.A.
•    Orange Polska S.A.
•    PCC Rokita S.A.
•    PGE S.A.
•    PGNIG S.A.
•    PZU S.A
•    Tauron PE S.A.
•    Trakcja PRKiI S.A.
•    Zespół Elektrociepłowni Wrocławskich Kogeneracja S.A.

The new RESPECT Index portfolio takes effect as of 18 December 2017.

“The RESPECT Index is gaining popularity year after year. A record-high number of companies enrolled in this year’s survey. This could be driven by Directive 2014/95/EU as regards disclosure of non-financial and diversity information by certain large undertakings and groups, effective as of 1 January 2017. The record-high number of companies participating in the RESPECT Index portfolio this year (28 companies including 3 new entrants) proves the growing importance of environmental, social, ethical, and corporate governance criteria, which are considered and factored into business decisions,” said Irena Pichola, Partner, Sustainability Consulting Central Europe Leader, Deloitte.

Manufacturing companies have been the biggest group of RESPECT Index participants since its launch. This year, two-thirds of the index portfolio (17 out of 28 companies) are manufacturers. As many as 7 companies have participated in the RESPECT Index continuously since the first edition, of which 5 are manufacturers. The average score of all companies was 62.42 out of 90 points, which was almost 6 points below last year’s average, mainly due to changes to the index portfolio with three new entrants, the absence of several regular participants, as well as minor modifications to the survey questionnaire. The average score of companies by sector was 62.50 points for manufacturers, 63.55 points for financial companies, and 58.04 for service providers.

The RESPECT Index performance proves that the companies in the portfolio generate higher returns than the market benchmark (WIG). Within eight years of the index, from November 2009 to December 2017, it has gained 85 percent. Meanwhile, the broad market index WIG has gained 59 percent and WIG20 – has gained 3.5 percent.

The RESPECT Index is Central and Eastern Europe’s first social responsibility index. The project was initiated by Warsaw Stock Exchange in 2009 when the first index portfolio was published. The RESPECT Index portfolio covers Polish and foreign companies listed on the GPW Main Market. The index portfolio is selected from among the most liquid listed companies participating in the indices WIG20, mWIG40 and sWIG80. The participating companies are screened in a three-step process by GPW and the Association of Listed Companies (SEG) in a review of their market communications, including current and periodic reports as well as corporate websites. Another condition – social responsibility including the environment, the community, and employees – is reviewed in a survey by the project auditor Deloitte. In the current format, the company survey and index revision are performed annually in the second half of the year. The share of each company in the index portfolio is determined according to the same rules as for other stock exchange indices, taking into account free-floating shares, subject to a cap of the weight of the biggest companies at 25 percent where the number of participating companies is under 20 and otherwise at 10 percent.

Figure 1. RESPECT Index and WIG performance in 2009–2017

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The Warsaw Stock Exchange (GPW) is the biggest exchange in Central and Eastern Europe. GPW operates a regulated market of shares and derivative instruments and the alternative stock market NewConnect for growing companies. GPW is developing Catalyst, a market for issuers of corporate and municipal bonds. Since 9 November 2010, GPW is a public company listed on Warsaw Stock Exchange. For more information, visit http://www.gpw.pl.