Dow Jones Sustainability Index

Dow Jones Sustainability Index

Description

DJSI (Dow Jones Sustainability Index) is a global sustainability benchmark. It is a set of principles and good practices developed in Switzerland by an investment company RobecoSAM to be used on a global scale. The main purpose of using this tool is to promote investors awareness of the importance of corporate sustainability and influence them in recognizing ways to integrate environmental, social, and governance factors into their investment strategies. This allows investors to gain a better understanding of a company’s quality of management and future performance potential.

How It Works

The DJSI has evolved into a platform by creating competition for index membership among companies within the same industry, allowing investors to learn from top-performing companies. The process starts by measuring company’s performance and benchmarking this information with other peers from that industry. This allows companies to learn from the data to adjust the company strategy in order to close possible gaps existing in their strategy.

Tool Outcome

Sustainability index to define the corporate sustainability benchmarking to be compared with other peers from that same industry.

Sustainability Criteria

Around 50% of the Corporate Sustainability Assessment criteria Includes industry-specific financially parameters.

Additional Information

  • Users of the tool- Investors
  • Phase when the tool applies- Finance, Prioritization
  • Geographic application- Projects Worldwide – Not specified