August 15, 2009
Dow Jones Sustainability Japan 40 Index Is Launched
by Robert Kropp
Index includes the largest 40 sustainability leaders in Japan, based on corporate sustainability
assessments by SAM.
The Dow Jones Sustainability
Index series has added the 14th benchmark to its series of global indexes tracking the
financial performance of the leading sustainable corporations worldwide. The Dow Jones
Sustainability Japan 40 Index (DJSI Japan 40) measures the performance of the largest 40
sustainability leaders in Japan, and is selected and weighted based on sustainability scores
developed by Sustainable Asset Management
According to SAM, "Sustainability investing is an investment approach
that enhances traditional valuation models by integrating extra-financial criteria which affect
shareholder value." SAM's corporate sustainability assessments include the traditional
environmental, social, and governance (ESG) criteria, and aims to generate outperformance versus
benchmarks based on analysis that sustainability investing can deliver superior returns.
recent report from
EIRIS, a UK-based provider of research into the
social, environmental and ethical performance of companies, found that ESG initiatives relating to
climate change by Japanese companies were comparable to those in Europe and North America. The
sophisticated levels of disclosure and quantification of risk by Japanese companies suggests that
the launch of the Japan 40 Index will be met with interest by sustainability investors.
"As one of the largest investment markets worldwide, Japan is a crucial player in driving the
integration of sustainability criteria into investing," said Alexander Barkawi, Managing Director
of SAM Indexes.
The Dow Jones Sustainability Indexes were launched in 1999. Currently, 70
licenses for the Dow Jones Sustainability Indexes are held by asset managers in 16 countries. The
licensees hold approximately $6 billion in assets under management.