September 14, 2012
SAM Updates Dow Jones Sustainability Indexes
by Robert Kropp
Microsoft and Hewlett Packard are added to the DJSI World, but no US-based companies are included
among the Index's 19 supersector leaders.
The Dow Jones
Sustainability Indexes (DJSI) date back to 1999, making them among the earliest sustainability
indexes. Based on sector-specific questionnaires developed by the SAM Group, the Sustainability Indexes include the
top 10% of the largest 2,500 companies in the Dow Jones Global Total Stock Market Index, ranked
according to their economic, environmental, and social performance.
sources utilized by SAM for its assessments are the analyses of media coverage of companies
provided by RepRisk. This year, in the
aftermath of last year's endorsement by the United Nations Human Rights Council of John Ruggie's Guiding
Principles on Business and Human Rights, SAM added a question to determine a company's
awareness of the Principles.
Each September, the DJSI are updated, and the results of this
year's review were announced this week. The number of components in the Indexes remains at 340, as
41 companies were added while the same number were deleted. The largest additions to the DJSI World
include Microsoft, Hewlett Packard, and Target. The largest deletions include IBM, GlaxoSmithKline,
and United Technologies. Duke Energy was also deleted from the World Index.
Microsoft was deleted from the DJSI North America Index following criticism of the consistency of
its sustainability reporting and its failure to adopt absolute emissions reduction targets. HP,
which was deleted from the DJSI World last year, returned to the Index this year.
US-based corporations was included among the 19 supersector leaders designated by DJSI.
The DJSI North America Index, which contributed 140 components to this year's World Index,
featured 17 additions and 16 deletions. In addition to Microsoft, ExxonMobil and du Pont were added
this year. Verizon, Time Warner, Dell, and Intuit were among those deleted.