| ||organisations: Dow Jones Indexes, STOXX Limited, Sustainable Asset Management (SAM)|
country: USA, Switzerland, Germany
service: Dow Jones Sustainability World Indexes (DJSI World)
context: the concept of corporate sustainability is attractive to investors because it aims to increase long-term shareholder value. Since corporate sustainability performance can now be financially quantified, investors now have an applicable corporate sustainability concept. A growing number of them are convinced that sustainability is an opportunity for enlightened and disciplined management, and, thus, a crucial success factor.
who: as a response, the publisher of the world's best known stock indicator, Dow Jones Indexes, the leading European index provider, STOXX Limited, and the internationally renowned pioneer in sustainability investing, SAM Group, launched the Dow Jones Sustainability Indexes (DJSI) in August 1999. The indexes reflect the combined expertise and resources of the vast experience of the three partners.
what: the DJSI indexes provide a comprehensive, rational, and flexible index to benchmark the performance of investments in sustainability-driven companies, identifying those firms that create long-term shareholder value by embracing opportunities and managing risks deriving from economic, environmental, and social developments. Companies also benefit. The DJSI components are selected through a systematic corporate sustainability assessment and include only the leading sustainability companies worldwide. The DJSI therefore provide a bridge between companies implementing sustainability principles and investors wishing to profit from their superior performance and favourable risk/return profiles.
for investors: the integrity of the corporate sustainability assessment and the index calculation ensures that the DJSI are independent, reliable and investable sustainability indexes.
for companies: the DJSI provide a financial quantification of their sustainability strategy and their management of sustainability opportunities, risks and costs.
goals: the DJSI will provide investors and companies with insight into the trends and events driving global supply and demand of sustainable products and services. This will bring a greater appreciation of the benefits of integrating sustainability principles in both corporate and investment strategies.
2004 results: the DJSI World Index will again include over 300 companies from 24 countries that lead their industries in terms of corporate sustainability. The pan-European sustainability benchmark – the Dow Jones STOXX Sustainability Index – will include 167 companies from 12 countries.
The annual review of the DJSI family is based on a thorough assessment of companies’ economic, environmental and social performance and accounts for more than 50 general as well as industry specific criteria in each sector. Its results will influence the investment decisions of asset managers in 14 countries who have licensed the DJSI family as objective benchmarks and underlying analysis for a variety of sustainability-driven portfolios. In total, these licensees currently manage close to 3 billion EUR in DJSI-based funds, structured products, segregated accounts as well as an exchange traded fund that is listed on Euronext.