Each year, over 3,400 publicly traded companies are invited to participate in RobecoSAM’s Corporate Sustainability Assessment. Of these, the largest 2,500 global companies by market capitalization are eligible for inclusion in the flagship DJSI World.
A list of the invited companies that form the starting universe of the Dow Jones Sustainability Index family, as well as a timeline for the Annual Corporate Assessment can be found here.
An integral component of the Corporate Sustainability Assessment is the Media & Stakeholder Analysis (MSA). The MSA process continuously monitors media coverage and other publicly available information from consumer organizations, governments or NGOs based on data provided by service provider RepRisk ESG Business Intelligence to identify companies' involvement and response to environmental, economic and social crisis situations that may have a damaging effect on their reputation and core business. On a daily basis, RepRisk screens, captures, filters and analyzes environmental, social and governance (ESG) risks related to companies in 14 languages from a wide range of external stakeholders and third parties. This information helps assess whether a company’s policies, processes, management systems and commitments are translating into performance as well as whether the company is exposed to material sustainability risks.
A range of issues such as labor disputes, accidents, human rights abuses or environmental disasters can harm a company’s reputation, resulting in financial consequences ranging from lost business, lost customers and declining sales, to liabilities, litigation or fines, all of which may have an impact on shareholder value. The MSA process analyzes the companies’ responses to such environmental, economic or social crisis situations that may have a negative impact on their core business or reputation.
The results of the MSA are built into the Corporate Sustainability Assessment and can reduce a company's Total Sustainability Score, thus affecting its inclusion in any of the DJSI Indices. In addition, severe incidents and breaches that cast strong doubts on a company’s procedures and ability to handle the situation can be escalated to the DJSI Index Committee. Following a thorough analysis, the DJSI Index Committee may decide to change a company’s eligibility immediately, regardless of the company’s Total Sustainability Score.
Information provided in the questionnaire is verified for accuracy by crosschecking companies' answers with the supporting documentation they have provided, checking publicly available information, and by verifying a company's track record on crisis management with media and stakeholder reports.
In addition, to ensure quality and objectivity of the CSA, independent third party Deloitte conducts an external audit of the assessment process each year. You can download the Assurance Statement from Deloitte here.
The DJSI Index Committee consists of two RobecoSAM representatives and two S&P Dow Jones Indices representatives and meets on a quarterly basis. Severe incidents and breaches that cast strong doubts on a company's procedures and ability to handle the situation can be escalated to the DJSI Index Committee.
The responsibilities of the DJSI Index Committee include the following: