S&P Dow Jones Indices (“S&P DJI”) has announced the results of the annual Dow Jones Sustainability Indices (DJSI) rebalancing and reconstitution. The DJSI are float-adjusted market capitalization weighted indices that measure the performance of companies selected with environmental, social and governance (ESG) criteria.
Launched in 1999, the DJSI including the Dow Jones Sustainability™ World Index (DJSI World) were among the very first set of global indices to track the largest and leading sustainability-driven publicly listed companies. The DJSI World, for example, is comprised of corporate leaders in global sustainability as identified by SAM, now a part of S&P Global, and represents the top 10% of the largest 2,500 companies in the S&P Global Broad Market Index based on long-term economic and ESG factors.
As a result of this year’s review, the following top three largest companies based on free-float market capitalization have been added to and deleted from the DJSI World. All changes are effective on Monday, November 23, 2020.
Additions: Humana Inc, Ecolab Inc, Fast Retailing Co Ltd
Deletions: Alphabet Inc, Bank of America Corp1, United Parcel Service Inc2
The DJSI combine S&P DJI’s rules-based index methodology with data from SAM’s Corporate Sustainability Assessment (CSA), an annual evaluation of companies’ sustainability practices. Each year, SAM evaluates more than 7,300 companies around the world, while the plan for 2020 is to evaluate more than 10,000. Furthermore, 2020 saw a record 19% increase in the number of companies actively completing the CSA which consists of a rigorous questionnaire assessing both public and non-public data submitted by participants.
Earlier this week, S&P Global announced that companies participating in the 2020 CSA will receive access to their S&P Global ESG Scores at the question level for the first time. Earlier this year, the DJSI methodology was updated to ensure that the indices continue to meet their stated objectives using a best-in-class approach whereby companies are scored based on a range of financially relevant and industry-specific ESG considerations.
The DJSI also include regional and country-level versions. The full results and list of DJSI constituents are available at https://www.spglobal.com/esg/csa/.
