2012 DJSI Review Results Announced
Launched in 1999, and managed jointly by the Dow Jones Indexes and Sustainable Asset Management, the Dow Jones Sustainability Indexes (DJSI) offer a benchmark for measuring the sustainability performance of 2,500 companies listed on the Dow Jones. As the longest running index of its kind, the DJSI has become a vital reference used by companies and investors in making sustainability investing decisions. Ethical consumers may also look to the DJSI for direction on which companies to support, an issue which is gaining momentum as members of the public become increasingly aware of the need to make changes to save the environment. To be included in the DJSI, companies are assessed on their long-term social, economic and environmental asset management plans. Companies are monitored throughout the year and indexes are updated annually in September.
The results for the 2012 Annual Review were recently released with the largest additions to the DJSI World index including Canadian National Railway Company, Target Corp and Microsoft Corporation. Deletions from this category included International Business Machines Corporation, United Technologies Corporation and GlaxiSmithKline PLC. In the Dow Jones Sustainability Europe Index there were 17 additions and 23 deletions; the Dow Jones sustainability north America Index had 17 additions and 16 deletions; the Dow Jones Sustainability Asia Pacific Index had 14 additions and 15 deletions; and the Dow Jones Sustainability Korea Index had 3 additions and 3 deletions.
SAM’s Head of Indexes, Guido Giese noted that the participation rate for the 2012 Corporate Sustainability Assessment was up by 8.4 percent compared with last year. This is seen as an indication that the participating companies appreciate the importance of incorporating sustainability into their business strategies. Managing Director and Chairman of the S&P Dow Jones Index Committee, David Blitzer, noted that there has been a continued and growing interest in long-term investment strategies that incorporate sustainability investing.
Press releases have been made by a number of companies keen to make known their inclusion in the 2012 Dow Jones Sustainability Index. These include Weyerhaeuser company (NYSE: WY), one of only three forest products companies that have been included in the World Index. Weyerhaeuser also remains in the Dow Jones North America Index, as it has since its inception. President and CEO of Weyerhaeuser, Dan Fulton noted that the DJSI is “the most important third-party validation” the company receives. Other companies mentioned in the press include Coca-Cola Hellenic; Goldcorp Inc. (TSX: G, NYSE:GG); Wipro Ltd; CSX Corporation; Sprint; NiSource Inc.; Liberty Global; AU Optronics Corp.; Unilever; Praxair; Spectra Energy Corp; BMW; GPT Group and Alcoa, to mention but a few.