Increasingly, investors are diversifying their portfolios by investing in companies that set industry-wide best practices with regard to sustainability.
Two factors drive this development.
First, 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, they now have an investable corporate sustainability concept. Second, sustainability leaders are increasingly expected to show superior performance and favourable risk/return profiles. More and more, investors are convinced that sustainability is a catalyst for enlightened and disciplined management, and, thus, a crucial success factor.
To benchmark the performance of their sustainability investments, private and institutional investors need global, rational, consistent, flexible and, most importantly, investable indices. They also need independent, reliable indices as a basis for derivatives and funds focused on sustainable companies.
In response, S&P Dow Jones Indices and RobecoSAM offer the Dow Jones Sustainability Index (DJSI) family. The series reflects the combined expertise, resources and vast experience of both partners: S&P Dow Jones Indices, the world's largest, global resource for index-based concepts, data and research, and RobecoSAM, the internationally renowned pioneer in sustainability investing.
For investors, the integrity of the Corporate Sustainability Assessment and the index calculation results in independent, reliable and investable sustainability indices.
For companies, the DJSI provides a financial quantification of their sustainability strategy and their management of sustainability opportunities, risks and costs. Because "What gets measured, gets done", they will be motivated to increase long-term shareholder value by integrating economic, environmental and social factors in their business strategies.
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.