Voting

[vc_row][vc_column][vc_column_text]

Introduction

To participate in ALAS20, organizations (both companies and institutional investors) and professionals must be nominated in the voting process administered by GovernArt in Brazil, Chile, Colombia, Peru and Mexico, through the perception study on sustainability, corporate governance, and responsible investment.

Dates of the Voting Process

The voting process is carried out on the following dates:

March 6, 2017: Voting starts
April 5, 2017: Voting closes

The voting takes place online, in the HOME section of www.alas20.com, on the GovernArt website www.governart.com , as well as on the websites of ALAS20´s Partners and Sponsors.

Once the voting process is completed, the validation process begins.

On April 24, 2017, the names of the organizations and professionals that have obtained the 10 highest votes in each of the categories in Brazil, Chile, Colombia, Peru and Mexico are published in www.alas20.com.

About the Voting Process for Companies

Through an invitation made by GovernArt in each country, it is possible to vote for the best companies in sustainability, corporate governance, and investor relations, as well as the best CEOs and Board Members of Leading Companies in sustainability.

In this survey, there are invited to vote on corporate governance, sustainability and investor relations, company leaders, finance managers, CEOs, and other members of companies with a stock market presence, family businesses, non listed companies, state owns companies, and other types of organizations. There are also invited to vote sell side and buy side financial analysts, investment managers, study managers, CEOs, and other members of Assett Management institutions, Investment Managers, Pension Funds Managers, General Funds Managers, Investment Funds Managers, Family Offices, and other Institutional Investors.

They vote for leading companies and professionals in the following categories:
COMPANIES:

Corporate Categories

• Leading Company in Sustainability
• Leading Company in Corporate Governance
• Leading Company in Investor Relations

Individual Categories

• CEO of Leading Company in Sustainability
• Board Member of Leading Company in Sustainability

Deployment of companies names in the voting process

Brazil

In the case of Brazil, the list with the name of the companies and professionals that is automatically deployed to be chosen from by the voters corresponds to all those companies that are part of the BOVESPA index.

BOVESPA is a stock index that is composed of more than 50 companies that are listed on the São Paulo Stock Exchange. The index consists of the companies that represent 80% of the volume traded in the last 12 months and which were traded at least 80% of the trading days. It is reviewed on a quarterly basis, in order to maintain the degree of representation of all the shares traded in the market.

Considering that the re-composition of this index is made on a quarterly basis, the list of companies to be taken into account will be the one valid on March 3, 2017, the business day immediately prior to the beginning of the voting process.

In addition, all voters have a space to type directly the name of their preference in the “others” blank field, for example, they can enter the name of a company or professional that does not appear in the list displayed automatically. In the case of typing the name of a company, the only requirement is that it is a listed company and traded on the stock exchange in Brazil. In the case of entering the name of a person, the only requirement is that this person is a professional working in a company based in Brazil.

Chile

In the case of Chile, the list with the name of the companies and professionals that is automatically deployed so that it can be chosen from by the voters corresponds to all those companies that are part of the IPSA index.

The portfolio of the IPSA index consists of the 40 stocks with the highest amounts traded daily averages (MTPD) on the Santiago Stock Exchange, which have a market capitalization of more than US $ 200,000,000 and a free float factor of not less than 5 % at the time of portfolio selection. If there is more than one series of the same issuer that may belong to the index, the series with the largest amount traded is considered.

In addition, all voters have a space to type directly the name of their preference in the “others” blank field, for example, they can enter the name of a company or professional that does not appear in the list displayed automatically. In the case of typing the name of a company, the only requirement is that it is a listed company and traded on the stock exchange in Chile. In the case of entering the name of a person, the only requirement is that this person is a professional working in a company based in Chile.

Colombia

In the case of Colombia, the list with the name of the companies and professionals that is automatically deployed so that it can be chosen from by the voters corresponds to all those that are part of the COLCAP index.

The COLCAP is made up of the 20 most liquid shares of the Colombian Stock Exchange, where the value of the adjusted market capitalization of each company determines its share in the index. If any action recorded in the basket disappears, it will remain with less than 20 emitters. In addition, the maximum participation that an issuer can have within the basket is 20%. If any issuer exceeds this limit, its participation is adjusted to 20% and the surplus is distributed proportionally among the other issuers of the basket.

Considering that the re-composition of this index made in 2017, the list of companies to be taken into account will be the one valid on March 3, 2017, the business day immediately prior to the start of the voting process.
In addition, all voters have a space to type directly the name of their preference in the “others” blank field, for example, they can enter the name of a company or professional that does not appear in the list displayed automatically. In the case of typing the name of a company, the only requirement is that it is a listed company and traded on the stock exchange in Colombia. In the case of entering the name of a person, the only requirement is that this person is a professional working in a company based in Colombia.

Peru

In the case of Peru, the list with the name of the companies and professionals that is automatically deployed to be chosen from by the voters corresponds to all those that are part of the S & P / BVL General Peru Index, which replaced the IGBVL, General Index of the Stock Exchange of Lima.

S & P / BVL Peru General is the benchmark of the peruvian market, reflecting the average trend of the main shares traded on the Lima Stock Exchange.

In addition, all voters have a space to type directly the name of their preference in the “others” blank field, for example, they can enter the name of a company or professional that does not appear in the list displayed automatically. In the case of typing the name of a company, the only requirement is that it is a listed company and traded on the stock exchange in Peru. In the case of entering the name of a person, the only requirement is that this person is a professional working in a company based in Peru.

Mexico

In the case of Mexico, the list of companies that is automatically deployed so that it can be chosen from by the voters corresponds to all those companies and professionals of companies that are part of the IPC, Index of Prices and Quotations of Mexico.

The IPC is the main stock index of the Mexican Stock Exchange (BMV), and expresses the performance that this market can have, taking as a reference the price variation of a sample of all the stocks traded on the stock exchange. It is prepared daily by the BMV based on the results of the daily session, for which it takes as reference the 35 main traders of the different sectors of the economy. It is calculated based on the price variations of a stock selection, called sample, which is balanced, weighted and representative of all the shares quoted in the BMV. Due to the re-composition of the index daily, in ALAS20 year 2017, the list will be taken into account on March 3, 2017, the business day immediately prior to the start of the voting process.

In addition, all voters have a space to type directly the name of their preference in the “others” blank field, for example, they can enter the name of a company or professional that does not appear in the list displayed automatically. In the case of typing the name of a company, the only requirement is that it is a listed company and traded on the stock exchange in Mexico. In the case of entering the name of a person, the only requirement is that this person is a professional working in a company based in Mexico.

Voting Results

The results of this vote allows to identify the 10 companies and professionals with the most votes in each category. These are the ALAS20´s Nominees.

Then, a Technical Evaluation ran by VIGEO EIRIS, an extra-financial risk rating agency, analyzes the background of the Nominated companies regarding their sustainability practices, according to their respective categories.

Finally, the background of the Technical Evaluation is given to ALAS20´s Jury in each country, made up of national experts and international specialists, who decide the organizations and professionals selected in each category.

About the Voting Process for Investors

Through an invitation made by GovernArt in each country, it is possible to vote for the best investment institutions in responsible investment, corporate governance, and sustainability research, and by the best CEOs and Board Members of responsible investment institutions.

This survey invites to vote «sell side» and «buy side» financial analysts, investment managers, study managers, CEOs, and other members of Assett Management institutions, Investment Managers, Pension Funds Managers, General Funds Managers, Investment Funds Managers, Family Offices, and other Institutional Investors. Also invited to vote are heads of investor relations, heads of corporate social responsibility, sustainability, and corporate affairs areas, finance managers, CEOs, and other members of companies with a stock market presence, family businesses, non listed companies, state owned companies, and other types of organizations.

They vote for leading institutions and professionals in the following categories:

INVESTORS:

Corporate Categories

• Leading Institution in Responsible Investment
• Leading Institution in Corporate Governance
• Leading Institution in Sustainability Research

Individual Categories

• CEO of Leading Institution in Responsible Investment
• Board Member of Leading Institution in Responsible Investment

Deploying of investors name on voting process

Brazil

In the case of Brazilian investors, the list with the names of organizations and professionals that is automatically displayed so that it can be chosen from by the voters, corresponds to all those who are signatories of the Principles of Responsible Investment of the United Nations (PRI) In the categories Asset Owners and Investment Managers, as of January 1, 2017, in addition to all those who received votes in ALAS20 during 2016.

In addition, all voters have a space to type directly the name of their preference, in the “others” blank field, for example, they can enter the name of an investment or professional institution that does not appear in the list displayed automatically. In the case of entering the name of an investment institution, the only requirement is that it is an institution based in Brazil. In the case of entering the name of a person, the only requirement is that this person is a professional working in an investment institution based in Brazil.

Chile

In the case of Chilean investors, the list with the names of organizations and professionals that is automatically displayed so that it can be chosen from by the voters, corresponds to all those who are signatories of the Principles of Responsible Investment of the United Nations (PRI) In the categories Asset Owners and Investment Managers, as of January 1, 2017, in addition to all those who received votes in ALAS20 during 2016.

In addition, all voters have a space to type directly the name of their preference, in the “others” blank field, for example, they can enter the name of an investment or professional institution that does not appear in the list displayed automatically. In the case of entering the name of an investment institution, the only requirement is that it is an institution based in Chile. In the case of entering the name of a person, the only requirement is that this person is a professional working in an investment institution based in Chile.

Colombia

In the case of Colombian investors, the list with the names of organizations and professionals that is automatically displayed so that it can be chosen from by the voters, corresponds to all those who are signatories of the Principles of Responsible Investment of the United Nations (PRI) In the categories Asset Owners and Investment Managers, as of January 1, 2017, in addition to all those who received votes in ALAS20 during 2016.

In addition, all voters have a space to type directly the name of their preference, in the “others” blank field, for example, they can enter the name of an investment or professional institution that does not appear in the list displayed automatically. In the case of entering the name of an investment institution, the only requirement is that it is an institution based in Colombia. In the case of entering the name of a person, the only requirement is that this person is a professional working in an investment institution based in Colombia.

Peru

In the case of Peruvian investors, the list with the names of organizations and professionals that is automatically displayed so that it can be chosen from by the voters, corresponds to all those who are signatories of the Principles of Responsible Investment of the United Nations (PRI) In the categories Asset Owners and Investment Managers, as of January 1, 2017, in addition to all those who received votes in ALAS20 during 2016.

In addition, all voters have a space to type directly the name of their preference, in the “others” blank field, for example, they can enter the name of an investment or professional institution that does not appear in the list displayed automatically. In the case of entering the name of an investment institution, the only requirement is that it is an institution based in Peru. In the case of entering the name of a person, the only requirement is that this person is a professional working in an investment institution based in Peru.

Mexico

In the case of Mexican investors, the list with the names of organizations and professionals that is automatically displayed so that it can be chosen from by the voters, corresponds to all those who are signatories of the Principles of Responsible Investment of the United Nations (PRI) In the categories Asset Owners and Investment Managers, as of January 1, 2017, in addition to all those who received votes in ALAS20 during 2016.

In addition, all voters have a space to type directly the name of their preference, in the “others” blank field, for example, they can enter the name of an investment or professional institution that does not appear in the list displayed automatically. In the case of entering the name of an investment institution, the only requirement is that it is an institution based in Mexico. In the case of entering the name of a person, the only requirement is that this person is a professional working in an investment institution based in Mexico.

Voting Results

The results of this vote allows to identify the 10 companies and professionals with the most votes in each category. These are the ALAS20´s Nominees.
Then, a Technical Evaluation ran by VIGEO EIRIS, an extra-financial risk rating agency, analyzes the background of the Nominated companies regarding their responsible investment practices, according to their respective categories.
Finally, the background of the Technical Evaluation is given to ALAS20´s Jury in each country, made up of national experts and international specialists, who decide the organizations and professionals selected in each category.

Methodology of the Voting Process

GovernArt in Brazil, Chile, Colombia, Peru and Mexico has an extensive list of potential participants for the ALAS20 voting process in each country, and could contact them during the voting process to promote their participation.

Each voter can vote once, and select up to three organizations / professionals in each category. Voters may update or amend their vote during the voting process on the survey platform, with the last vote recorded at the close of voting process being considered valid for counting purposes. Voters are not required to register their 3 preferences in each category, nor are they required to vote for all categories of ALAS20. This recognizes that voters could value a limited number of organizations / professionals in the ALAS20 categories, or that they may not have an opinion on any particular category.

In order to facilitate voter participation, the only requirement for voting is registering a corporate email. By making the voting process simple, inappropriate votes may be received, duplicated by the same individual using different email accounts, and even votes from individuals voting for their own organization. To eliminate these votes, the vote is subject to a review and validation process consisting of 2 stages.

First, the votes are verified. With the proprietary databases of GovernArt in Brazil, Chile, Colombia, Peru and Mexico, the validity of the voters, and of the votes received, is verified. This first stage allows to identify that the voters and the votes are legitimate, according to the category subject of the votes. An important part of this process is automatic, by scanning voters’ email addresses against GovernArt’s own databases. In addition, a series of manual checks are performed. In this verification process, voters may be contacted to verify their votes, or to check with their respective companies on the votes received. These verifications allow for the assurance that only legitimate votes will be included in the results of the voting process. In this process, all votes received from personal email accounts (yahoo, gmail, hotmail, etc.) and not verified from corporate email accounts, will be excluded from the voting process.

Second, there is a review of the duplicated votes of individuals who may have voted two or more times. If such votes come from the same email account, they are automatically processed to accept as valid only the last vote received. When these types of votes come from different email accounts, votes for personal email accounts are excluded. If the different email accounts are corporate, they are automatically checked against the voter’s name, and a manual review of all individual votes received from the same organization is performed. Any duplicate vote is then excluded.

The process described above considers that all votes received in each category are analyzed and counted separately. This allows the results to be calculated separately, and that the votes of a particular category do not affect the calculation of the results of other categories.

Once all the votes have been received, verified, and nominees lists are generated, the results are reviewed to identify any case in which the same organization or professional is duplicated in the lists, and then these results are consolidated and calculated. Finally, the list of the 10 most voted organizations / professionals in each category in Brazil, Chile, Colombia, Peru and Mexico is published in alphabetical order in the Nominees section of ALAS20´s website.

PFor more information on the voting process of ALAS20 administered by GovernArt in Brazil, Chile, Colombia, Peru and Mexico you can contact diana.rubinstein@alas20.com

Stakeholders´ Involvement

Organizations interested in disseminating their participation in ALAS20 can provide GovernArt a list of contacts to be included in the invitation to vote list. The list of contacts must be sent to diana.rubinstein@alas20.com with the consent of the company, by signing a Non Disclosure Agreement with GovernArt. In this way, these relevant stakeholders will be invited directly to vote in ALAS20.

Organizations interested in promoting their participation in ALAS20 can also register and download from here the «Participant Kit», a set of free ALAS20 logos that allow organizations to communicate and publish on their websites and corporate communications – such as newsletters, newsletters and informational emails – of their participation. Our experience in previous events of this type indicates that this is an effective way of disseminating their participation in ALAS20.

In addition, organizations interested in disseminating their participation in ALAS20 can provide the organizers with a list of contacts to be included in the Distribution List of the Official Newsletter of ALAS20; In this way, its relevant stakeholders will know about their participation in ALAS20.[/vc_column_text][/vc_column][/vc_row]