Dow Jones Sustainability Indices 2018 Make Major Additions, Cuts

The annual Dow Jones Sustainability Indices review results for 2018 are out and include several notable additions and deletions.

Based on free-float market capitalization, the three largest additions include cloud computing company Salesforce, oilfield services company Schlumberger, and multinational alcoholic beverages company Diageo.

Major deletions from the DJSI include Samsung Electronics, Bayer, and Commonwealth Bank Australia. However, Samsung remains a member of DJSI World Enlarged and DJSI Korea, and the bank is still a member of DJSI World Enlarged and DJSI Asia Pacific.

Initially launched in 1999, the DJSI is a global index tracking leading sustainability-driven companies based on sustainability investing company RobecoSAM’s analysis of financially material environmental, social, and governance factors and S&P Dow Jones Indices’ methodology.

New index addition Salesforce has been making sustainability headlines lately, namely for signing a wind PPA in late August and for being one of 12 global businesses to sign the World Green Building Council’s Net Zero Carbon Buildings Commitment.

Other notable DJSI inclusions:

• Allianz Group secured the top position as sector leader among all rated insurance companies for the second time in a row. The company has been listed on the DJSI since 2000.
• Ball Corporation is listed in the world and North America for the sixth year in a row, achieving industry-leading scores on criteria such as product stewardship, occupational health and safety, codes of business conduct, and environmental reporting.
• Mondelez International was named to the North America and world indices with an overall score that was in the 92nd percentile of its industry.
• Campbell Soup Company has been named to the North America index for the 10th consecutive year.
• For the eighth consecutive year, Ingersoll Rand has been named to the world and North America indices.
• Water, hygiene, and energy technologies and services company Ecolab has been named to the North America index for the fourth consecutive year.
• Despite controversy over burning unsold products, Burberry is included in the world index for the fourth consecutive year, in the consumer durables and apparel industry.

RobecoSAM noted that this year a record 993 companies participated in the Corporate Sustainability Assessment, a 5.4% increase over 2017’s participation numbers. This marked the 20th time the questionnaire was sent to the world’s largest companies.

“With the 2018 methodology, we focused on aligning our methodology with both our own view on the most financially material topics and accepted sustainability reporting frameworks such as GRI, SASB, and CDP in order to improve clarity and data consistency for companies,” RobecoSAM’s update said. “This helped to align the questionnaire and address the growing reporting burden companies face.”