Australia and New Zealand Banking, Tabcorp and Stockland are industry group leaders in the 2013 Dow Jones Sustainability Indices (DJSI) review.
S&P Dow Jones Indices, in collaboration with RobecoSAM, have announced that the DJSI World Index 2013/2014 will have 333 components after 39 additions and 47 deletions. The DJSI were launched in 1999 and track the financial performance of the leading sustainability-driven companies worldwide.
“The DJSI have a double impact,” said Guido Giese, head of indices, RobecoSAM. “They enable investors to integrate sustainability into their portfolios and at the same time they provide an engagement platform that encourages companies to adopt sustainable best practices. We encourage active participation in our Corporate Sustainability Assessment each year and this year we were happy to see a 31% increase in participation from companies in emerging markets.”
The annual review of the DJSI has resulted in companies including Bank of America, UBS and United Parcel Service being added to the DJSI World index, while Johnson and Johnson, HSBC and Vodafone have been dropped from the DJSI World. Wesfarmers also made it into the top 10 largest deletions by market capitalisation.
The DJSI World tracks the performance of the top 10% of the 2500 largest companies in the S&P Global Broad Market Index that lead the field in terms of sustainability. These 2500 companies represent the eligible universe for the DJSI World and are assessed using the RobecoSAM annual Corporate Sustainability Assessment. RobecoSAM invites over 3,000 publicly traded companies, including 800 companies in emerging markets, to report annually on their sustainability practices.
DJSI also generate regional and country-based indices. Australian companies appear not only in the DJSI World, but also the DJSI Australia index. The DJSI Australia index is based on the ASX200, and 55 companies feature in the DJSI Australia. This year, the largest three additions to the DJSI Australia are Wesfarmers, AMP and Aurizon, while the largest three deletions are ResMed, Toll Holdings and ALS.