LONDON and NEW YORK and ZURICH, Sept. 8, 2016 /PRNewswire/ -- S&P Dow Jones Indices (S&P DJI), one of the world's leading index providers, and RobecoSAM, the investment specialist focused exclusively on Sustainability Investing (SI), today announced the results of the annual Dow Jones Sustainability Indices (DJSI) review.
The three largest additions and deletions (by free-float market capitalization) to the DJSI World this year include:
Additions: Cisco Systems Inc, Royal Dutch Shell PLC, Adobe Systems Inc
Deletions: Intel Corp*, Samsung Electronics Co Ltd, British American Tobacco PLC*
The component lists for the DJSI will be published on the RobecoSAM website on Monday, September 12, 2016. All changes are effective on Monday, September 19, 2016.
Launched in 1999, the DJSI World is the gold standard for corporate sustainability and the first global index to track the leading sustainability-driven companies based on RobecoSAM's analysis of financially relevant Environmental, Social, and Governance (ESG) factors and S&P DJI's robust index methodology. RobecoSAM invited the world's largest 3,400 companies from developed and emerging markets to take part in its annual Corporate Sustainability Assessment (CSA).
Appetite for Sustainability Investing on the Rise
ESG integration has gone mainstream, attracting the attention of more and more investors. RobecoSAM's database of comprehensive research regarding financially relevant sustainability information enables RobecoSAM and S&P DJI to provide tailor-made indices designed to meet investors' growing needs for SI investment solutions. The aim of the CSA methodology is to address upcoming sustainability trends that are connected to financial performance and thus raise the bar each year.
Manjit Jus, Head of Sustainability Application & Operations, RobecoSAM: "The iconic DJSI offer a great opportunity for companies to drive their sustainability performance. Moreover, the CSA addresses the right sustainability issues that support companies to remain at the cutting edge of their industry and forms the basis of new, innovative index solutions that we develop together with our partner S&P Dow Jones Indices."
David Blitzer, Managing Director and Chairman of the Index Committee, S&P Dow Jones Indices: "With 2016 likely to be the hottest year on record, investors are again reminded that companies' environmental and sustainability efforts are crucial to their financial outcomes. The Dow Jones Sustainability Indices are comprehensive benchmarks of companies that meet RobecoSAM's sustainability standards and give investors tools to develop global allocations that reflect sustainability factors."
The Corporate Sustainability Leaders
RobecoSAM identifies the top scoring company in each of the 24 industry groups (according to GICS®). The 2016-2017 Industry Group Leader profiles can be found on the RobecoSAM website.
*These companies are still part of regional indices
Observations from the 2016 DJSI Review
The CSA consists of over 100 financially relevant questions. An analysis of this year's review provides insight into the business practices of the world's largest companies. Below are some of the most notable observations from the 2016 Review:
Criteria, Where World's Largest Companies Scored Highest in 2016:
- Codes of Business Conduct
- Corporate Governance
- Environmental Policy & Management Systems
Criteria, Where World's Largest Companies Scored Lowest in 2016:
- Operational Eco-Efficiency
- Human Capital Development
- Materiality (New criteria in 2016)
Surprisingly, many companies still underestimate the importance of "Human Capital Development" and lack the ability to not only qualitatively, but also quantitatively, link investments in human capital with tangible business benefits.
Most Improved CSA Criteria Relative to Last Year:
- Corporate Citizenship and Philanthropy: +22.09%
The high score in "Corporate Citizenship and Philanthropy" shows that companies increasingly approach their corporate citizenship activities in a strategic manner, with defined priorities that are aligned with their business drivers, allowing companies to leverage their strengths, brand and employees to have the maximum impact on the beneficiaries.
Least Improved CSA Criteria Relative to Last Year:
- Labor Practice Indicators and Human Rights: -34.82%
The criteria "Labor Practice Indicators and Human Rights" deteriorated the most due to newly introduced questions focusing on human rights. Based on the results, it is clear that this is a developing area of interest for companies – many have human rights policies in place, but few have the tools to comprehensively assess, mitigate and remediate human rights risks.
For further methodology information, please visit the CSA Resource Center, where you find criteria weightings, 2016 criteria changes, Measuring Intangibles brochure, key facts, participation benefits, CSA companion and more.
ABOUT S&P DOW JONES INDICES
S&P Dow Jones Indices, a division of S&P Global, is the largest global resource for index-based concepts, data and research, and home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average®. More assets are invested in products based on our indices than any other provider in the world. With over 1,000,000 indices and more than 120 years of experience covering a wide range of asset classes across the globe, S&P Dow Jones Indices defines the way investors measure and trade the markets. For more information, visit www.spdji.com.
Founded in 1995, RobecoSAM is an investment specialist focused exclusively on Sustainability Investing. It offers asset management, indices, impact analysis and investing, engagement, voting, sustainability assessments, and benchmarking services. Asset management capabilities cater to institutional asset owners and financial intermediaries and cover a range of ESG-integrated investments (in public and private equity), featuring a strong track record in resource efficiency themed strategies. Together with S&P Dow Jones Indices, RobecoSAM publishes the globally recognized Dow Jones Sustainability Indices (DJSI). Based on its Corporate Sustainability Assessment (CSA), an annual ESG analysis of over 3,800 listed companies, RobecoSAM has compiled one of the world's most comprehensive databases of financially material sustainability information. The data of the CSA is also included in USD 87.3 billion of assets under management by the subsidiaries of the Robeco Group.
RobecoSAM is a sister company of Robeco, the Dutch investment management firm founded in 1929. Both entities are subsidiaries of the Robeco Group, whose majority shareholder is ORIX Corporation. As a reflection of its own commitment to advocating sustainable investment practices, RobecoSAM is a signatory of the UNPRI and a member of Eurosif, ASrIA and Ceres. Approximately 130 professionals work for RobecoSAM, which is headquartered in Zurich. As of June 30, 2016, RobecoSAM had assets under management, advice and/or license in listed and private equity* of approximately USD 10.8 billion. Additionally, RobecoSAM's Governance & Active Ownership team** had USD 226 billion of assets under engagement and USD 53 billion of assets under voting.
Important legal information:
S&P® is a registered trademark of Standard & Poor's Financial Services LLC ("S&P"), a division of S&P Global, Inc. Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"). RobecoSAM is a registered trademark of Robeco Groep N.V. These trademarks have been licensed to S&P Dow Jones Indices LLC ("S&P DJI), a division of S&P Global, Inc. The Global Industry Classification Standard (GICS®) was developed by, and is the exclusive property and a trademark of, S&P and MSCI Inc.
It is not possible to invest directly in an index. S&P DJI, Dow Jones, S&P and their respective affiliates do not sponsor, endorse, sell or promote any investment fund or other investment product that is offered by third parties and that seeks to provide an investment return based on the performance of any index. S&P DJI does not make investment recommendations, and inclusion of a security within an index, and CSA results, are not recommendations by S&P DJI for the purchase or sale of any security or other asset or to pursue any investment strategy. This document is for information purposes only and does not constitute an offer of services in jurisdictions where S&P DJI does not have the necessary licenses. S&P DJI receives compensation for licensing its indices to third parties.
The securities identified and described may or may not be purchased, sold or recommended for advisory clients of RobecoSAM. It should not be assumed that an investment in these securities was or will be profitable. *RobecoSAM Private Equity is the marketing name of the combined private equity divisions of Robeco Institutional Asset Management B.V. ('Robeco') and its fully owned subsidiary, RobecoSAM AG ('RobecoSAM'). Any funds or services offered by RobecoSAM Private Equity are managed and offered by Robeco, who may have delegated certain investment advisory functions to RobecoSAM. ** RobecoSAM's Governance & Active Ownership team is a brand name of Robeco. RobecoSAM USA is an investment adviser registered in the US. RobecoSAM USA, 909 third avenue, New York, NY 10022. Copyright© 2016 RobecoSAM – all rights reserved.
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SOURCE S&P Dow Jones Indices