PUBLIC INFORMATION 1

Sustainability at B3

PUBLIC INFORMATION 2

B3’s key role in sustainable development

Development of financial and capital markets

A financing and growth source for companies

and an investment alternative for market agents

Sustainable development

Member of the GRI Brazil Advisory Group

Member of the Advisory Board of CDP Latin America

Co-vice-chair of the Sustainability Working Group of the WFE

The first stock exchange in the Americas and the sixth in the world to adhere to

Women’s Empowerment Principles (WEPs), 2017

A founding signatory to SSE – Sustainable Stock Exchanges initiative, UN, 2012

1st exchange from an emerging country to be signatory to the

PRI – Principles for Responsible Investment, 2010

SDG Advisory Committee

1st stock exchange in the world to be signatory to the Global Compact, 2004.

Sonia Favaretto recognized as one of the ten "2016 Local SDG Pioneers".

Vice-president of the Global Compact Brazilian Committee

B3 – one of the world’s largest financial market infrastructure

providers in market value

PUBLIC INFORMATION 3INFORMAÇÃO INTERNA 3

Influence of UN media and other initiatives to advance the integration of ESG in industry.

World

Structuring the ESG agenda through the Federação Ibero-Americana de Bolsas(FIAB).

Latin American

Induction of best practices: transparency and disclosure; mobilization; insertion of ESG issues into the mainstream through products and services

Brazil

As a listed company“walk the talk”.

B3

B3’s agenda

Products and

services

Transparency

Education

Influences and

partnerships

• ISE – Corporate Sustainability Index

• Report or Explain for the Sustainable

Development Goals (SDGs)

• Sustainability guides from B3 align to

TCFD and 2030 agenda

1.

2.

3.

4

5.

PUBLIC INFORMATION 4INFORMAÇÃO INTERNA 4

OurChallenge

Investors need relevant and quality

socio-environmental information for

complete decision making.

Without this information, investors

follow the traditional resource

allocation model, which prioritizes

economics and finance.

Companies and sustainability

experts, meanwhile, complain that

investors fail to pay sufficient

attention to socioenvironmental

issues

PUBLIC INFORMATION 5

ISE: the world’s 4th Sustainability IndexAn index that measures average return on a theoretical share portfolio constituted of companies

listed at B3 that have the best sustainability practices.

2007

2009

2008

2010

1999

2003

2001

2005

2014

2015

2011

2016

PUBLIC INFORMATION 6

Corporate Sustainability Index - ISE

General Information

• Composed of up to 40 companies selected from issuers of the 200 most liquid

shares.

• Voluntary participation.

• Methodology based on a questionnaire that has 7 dimensions and on the

submission of evidences. The questionnaire is collectively built.

• Term: January to December.

• On the market: Exchange Traded Fund (ETF), ISE index fund.Net Worth of R$ 26.551.527,86 (April 03, 2018).

• Technical Partner: FGV Sustainability Studies Center (FGVces).

• Assurance Partner: KPMG.

• Press monitoring partner: Imagem Corporativa.

PUBLIC INFORMATION 7

• ISE’s highest governance body.

• Aims to guarantee a transparent process of the Index’s construction and stock

selection.

• Made up of representatives from 11 institutions and headed by B3.

Corporate Sustainability Index - ISE

ISE’S board

PUBLIC INFORMATION 8

ISE Portfolio – 2018BRL R$ 1.282.433.482.115,40 - 41,47% of total market value (position 22/11/2016)

30 companies, 33 stocks, 12 sectors. Term: Jan. 02, 2018 to Jan. 04, 2019.

PREREQUISITE: DISCLOSURE OF ANSWERS TO THE QUESTIONNAIRE

PUBLIC INFORMATION 9

2014

2013

2015

2012

2016

* On October 28, 2015, BicBanco made a successful tender offer, leaving the portfolio and BM&FBOVESPA.

*On June 21, 2016, OI went into exceptional trading status, ceasing to be part of the ISE portfolio on June 22, 2016

*

Companies that authorized disclosure of their answers to the Questionnaire

Evolution

*

PUBLIC INFORMATION 10

600

1.100

1.600

2.100

2.600

3.100

3.600

IBOVESPA ISE

Performance Evolution

ISE x IBOVESPA

BASE 1.000 = 30/11/2005

00,00%

20,00%

40,00%

60,00%

80,00%

100,00%

120,00%

ISE IBOVESPA

Volatility Evolution

ISE x IBOVESPA

BASE 1.000 = 29/12/2005

PUBLIC INFORMATION 11

In 2012, the Exchange started recommending all listed companies to

inform if they published sustainability or integrated reporting. If not, they

should explain the reason for not publishing.

Sustainability or Integrated Reporting 2012- 2016

• As of 2016 following a review, the

Securities and Exchange Commission of

Brazil (CVM) has turned “Report or

Explain” into a specific item for ESG

issues.

2016 – via Brazilian Regulator CVM

7.8 With regard to sustainability policies, please state:

a) whether the issuer discloses social and

environmental information

b) the methodology used to do so

c) whether this information is audited or reviewed by

an independent body

d) the website where this information can be found

Report or Explain for Sustainability or Integrated ReportingIn partnership with GRI

PUBLIC INFORMATION 12

Report or Explain for the Sustainable Development Goals (SDGs) 2017

Does your company elaborate Sustainability or

Integrated Reports taking into account the

Sustainable Development Goals (SDGs)?

Breakdown of explanations

Not yet, but we

intend to or are

studying the

possibility

41%

0%

We know what are the SDGs but

we do not see value in including

them in our report

It is not our company’s

priority at the moment

20%

We do not

know the SDGs

6%

Other

14%

We do not, due

to cost

11%

Not yet, but we are

elaborating it

8%

36

17

5

12

10 7

87

TOTAL

Did not

comment

67%

296

60

87

Yes

13%

No, but

explained

20%

443

LISTED COMPANIES

PUBLIC INFORMATION 13

Sustainability: Business Opportunity in the

Intermediation Sector

Sustainability guide for

brokers, to be lauched in

October 2nd, 2017

Sustainability best

practices e-book for

privately-held companies,

2016

Sustainability in Business:

Getting Started, How to begin,

who to involve and what to

prioritize

– only in Portuguese

http://www.bmfbovespa.com.br/pt_br/noticias/guia-de-

sustentabilidade.htm

List 13 practical steps to be taken by companies to incorporate ESG factors into their business strategy.

Aligned with international

sustainability indicators of

entities such as SSE, WFE, GRI

and Corporate Knights Capital

Second edition of the

Sustainability Guide

Novo Valor, 2016

Novo Valor – Corporate

Sustainability: Getting Started,

How to begin, who to involve and

what to prioritize B3 highlights new business opportunities by

integrating ESG issues into the organizational

structure and internal processes through:

• Guide publication;

• Workshops;

• ESG integration to the Operational

Qualification Program (PQO).

Sustainability Guide Novo

Valor for listed

companies, 2011

Novo Valor – Corporate

Sustainability: How to begin, who

to involve and what to prioritize

http://www.bmfbovespa.com.br/pt_br/institucional/sustentabili

dade/nas-empresas/publicacoes-e-encontros/http://www.bmfbovespa.com.br/en_us/abo

ut/press/recent-releases/press-13.htm

Promotion of best practices

Sustainability guides for companies and brokers

PUBLIC INFORMATION 14

Is the glass

half empty or

half full?