The Dow Jones Sustainability Index

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The Dow Jones Sustainability Index (DJSI) was launched in 1999, making its name as the world’s first leading global benchmark for sustainability. This index consists of the top 10% of the largest 2,500 companies in terms of sustainability. Corporate sustainability is the business approach that formulates long-term shareholder value by grasping opportunities and controlling risks created from economic, environmental and social development. Sustainability serves as opportunities and risks that companies must adjust to and is critical to the creation of long-term shareholder value, especially in an increasingly resource constrained world. The DJSI has become an effective engagement platform as it encourages competition among companies for a…show more content…
If companies that meet a certain size criteria decide not to participate, RobecoSAM completes the questionnaire to their fullest extent based on publically available information. The “Assessed Universe” is created following the results of the CSA questionnaire as a result of companies are ranked against peers according to their Total Sustainability Score. RobecoSAM then continues to monitor new coverage of the companies in the universe on a daily basis, whether it is through media stories, RepRisk, and etc., in order to analyze the company’s involvement with the environmental, social, economic issues that may negatively effect one’s reputation and core business. Through careful observation of the universe, RobecoSAM is able to in decide whether a company’s policies, processes, management systems, and commitments shape into excellent positive performance. RobecoSAM then has 59 industries roll up into 24 global industry groups so that the top scoring company from each is included on the DJSI. Not only does RobecoSAM stand as the basis for the development of the DJSI, but it also provides insights used to conduct empirical in-house research or is used to measure the impact of corporate sustainability performance on financial performance. The triple bottom line is measured in three different categories including social, environmental, and financial factors. The financial factors are easy to measure
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