Dow Jones Sustainability indices reviewed, major firms removed

SRIsFollowing the announcement in April of Swiss investment firm RobecoSAM’s corporate sustainability assessment of the Dow Jones Sustainability Indices (DJSI), changes to its make-up have been made.

The three largest additions and deletions by market capitalisation to the DJSI this year include Cisco Systems, Pepsico and Royal Bank of Canada being removed. Bank of America, Telefonica and BHP Biliton have been added to the indices.

Other findings from the review saw that in terms of environmental, social and governance (ESG); electronic equipment, instruments and components industries have improved the most. However, the biggest decline in ESG factors was seen in the life sciences, tools and services sector.

The review also found that the world’s largest companies perform best in code of conduct/compliance criteria and struggle most with operational eco-efficiency.

Guido Giese, head of indices, RobecoSAM, says: “Over the years the DJSI index family has not only come to be the gold standard for corporate sustainability but has also become a competitive platform where companies receive recognition for their sustainability practices.”

David Blitzer, managing director and chairman of the index committee at S&P Dow Jones Indices, explains why the reviews are important. “More and more investors look at companies’ environmental policies and track records in making their investment decisions,” he says.

The components list for the DJSI will be published on September 14 and all changes are effective on September 21, 2015.

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