Investors are increasingly recognizing the importance of corporate sustainability and are exploring ways to integrate environmental, social and governance factors into their investment strategies.
By analyzing corporate sustainability performance, investors can gain a better understanding of a company’s quality of management and future performance potential. This, in turn, enables investors to identify investment opportunities that can generate long-term shareholder value. In short, a focus on sustainability leads to better-informed investment decisions.
To measure the performance of their sustainability investments, private and institutional investors need global, consistent and, most importantly, investable indices.
In response, S&P Dow Jones Indices and RobecoSAM offer the Dow Jones Sustainability Indices (DJSI) in 1999 as the first ever family of global sustainability benchmarks. Launched as a collaboration between S&P Dow Jones Indices and RobecoSAM, the DJSI combine the experience of an established index provider with the expertise of a specialist in Sustainability Investing to provide investors with objective benchmarks for managing their investment portfolios.
For investors, the integrity of the Corporate Sustainability Assessment and the index calculation results in a range of independent, reliable and investable sustainability indices that track the financial performance of companies that lead their industries in terms of corporate sustainability.
Because the DJSI rely on a best in-class approach for selecting the most sustainable companies from each of the 59 assessed industries, companies must continually intensify their sustainability initiatives to be included or remain in the DJSI. As a result, the DJSI have evolved into an effective engagement platform by creating vibrant competition for index membership among companies within the same industry.