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Results of the DJSI Review 2003

Results of the DJSI Review 2003

Published 09-05-03

Submitted by SAM Indexes

ZURICH - Dow Jones Indexes, STOXX Limited and SAM Group today announced the results of the annual review for the Dow Jones Sustainability Indexes (DJSI). Effective with the opening of equity markets on September 22, 2003 the Dow Jones Sustainability World Index will again include over 300 companies from 22 countries that lead their industry in terms of corporate sustainability. The pan-European sustainability benchmark – the Dow Jones STOXX Sustainability Index – will include 178 companies from 13 countries. Both indexes will continue to closely mirror the sector distribution of the corresponding mainstream equity benchmarks.

The annual review will influence the investment decisions of 45 asset managers who have licensed the DJSI family as objective benchmarks and underlying for sustainability-driven portfolios. In total, these licensees currently manage over 2.2 billion EUR in DJSI-based funds, structured products, segregated accounts as well as an exchange traded fund that is listed on Euronext.

The assessment results also provide detailed information about recent sustainability developments in the corporate world. Across all industries the integration of economic, environmental and social criteria has moved further up the business agenda and is increasingly incorporated into company strategies and core business operations. Comprehensive sustainability reporting characterized by hard indicators and wider verification, the definition and implementation of global environmental and social standards along the entire value chain, reduction of energy consumption and overall environmental footprint, a clear quantification and strategic management of corporate brands around sustainability issues, as well as a growing emphasis on organizational learning and adaptability characterize many of today’s sustainability leaders. The expansion of CO2-emission trading capabilities within the energy industry, proactive strategies in the healthcare sector to provide drugs to developing countries at reduced prices, and the development of more fuel-efficient mobility systems are further industry-specific examples of best-practice.

As the impact of sustainability trends on business becomes increasingly evident, the integration of economic, environmental and social criteria is making further inroads into mainstream investing.

“Since we launched the DJSI family in 1999, there has been a significant shift in market perception of sustainability investments. A growing number of private and institutional investors are adapting economic, environmental and social criteria to reflect the impact of sustainability issues on long-term shareholder value. As a result, we are now seeing this investment style stepping out of its niche and making its way into mainstream asset management and equity research. This is a very encouraging development for this market segment which we will continue to support with objective and professional benchmarks,” says John Prestbo, editor, Dow Jones Indexes.

“During the last twelve months the Dow Jones Sustainability Indexes have again extended their reach into the investment world. With new DJSI-based products in Austria, Canada, Denmark, Finland, France, Italy and the Netherlands, investors now have an even wider choice of sustainability-driven portfolios managed against these benchmarks. The annual review ensures that these offerings are based on an accurate and up-to-date reflection of best-practice in corporate sustainability. The yearly assessment also gives companies an incentive for constant improvements to best-inclass sustainability performance,” adds Alexander Barkawi, managing director, SAM Indexes.

Note to the editor:

Launched in 1999, the Dow Jones Sustainability Indexes are the first global indexes tracking the financial performance of the leading sustainability-driven companies worldwide. Based on the cooperation of Dow Jones Indexes, STOXX Limited and SAM Group they provide asset managers with reliable and objective benchmarks to manage sustainability portfolios.

The Dow Jones Sustainability World Indexes (DJSI World) cover the top 10% of the biggest 2,500 companies in the Dow Jones World Index in terms of economic, environmental and social criteria. As a benchmark for European sustainability investments, the Dow Jones STOXX Sustainability Indexes (DJSI STOXX) cover the leading 20% in terms of sustainability of the companies in the Dow Jones STOXXSM 600 Index. The selection of index components follows a rule-based process defined in the DJSI Guidebooks. It is based on a thorough assessment of general and industry specific sustainability criteria. The analysis is verified by an external auditor. Full details about the design philosophy, review methodology and index components are freely available at www.sustainability-indexes.com.

Since the last review in September 2002, the DJSI World has outperformed the mainstream market. During that period, the DJSI World (in USD) increased by 23.1% while the DJ World Index (in USD) went up by 22.7% and the MSCI World (in USD) rose by 21.2%. In the same period, the DJSI STOXX (in EUR) increased by 9.2% compared to 7.8% for the DJ STOXX 50 (in EUR).

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