Global Investors Adopting ESG Integration: DJSI Review

(3BL Media/Justmeans) – According to the United Nations Principles for Responsible Investment (UN PRI), 1,500 investors representing over $60 trillion in assets under management have committed to integrating sustainability into their investment decisions. Investors increasingly recognize that Environment, Social and Governance (ESG) factors are important contributors to financial performance.

S&P Dow Jones Indices and RobecoSAM have announced the results of the 2016 Dow Jones Sustainability Indices (DJSI) review. The key takeaway from the review is that appetite for sustainability investing is on the rise. ESG integration has become a mainstream practice, with a growing number of investors around the world turning their focus on ESG factors.

David Blitzer, Managing Director and Chairman of the Index Committee, S&P Dow Jones Indices, said that with 2016 likely to be the warmest year on record, investors are again reminded that companies’ environmental and sustainability efforts are crucial to their financial outcomes. The DJSI are comprehensive benchmarks of companies that meet RobecoSAM’s sustainability standards and give investors tools to develop global allocations that reflect sustainability factors.

RobecoSAM invited the world’s largest 3,400 companies from developed and emerging markets to take part in its annual Corporate Sustainability Assessment (CSA). RobecoSAM identified the top scoring company in each of the 24 industry groups. The three biggest additions to the DJSI World this year include Cisco Systems Inc, Royal Dutch Shell PLC, and Adobe Systems Inc.

The 2016 Review revealed that the world’s largest companies scored highest in the areas of Codes of Business Conduct, Corporate Governance, and Environmental Policy & Management Systems. The most improved CSA criteria relative to last year was Corporate Citizenship and Philanthropy (+22%).

The high score in Corporate Citizenship and Philanthropy shows that companies increasingly approach their corporate citizenship activities in a strategic manner, with defined priorities that are aligned with their business drivers.

Industry group leaders in 2016 for each of the 24 industry groups represented in the DJSI include: Bayerische Motoren Werke, Westpac Banking Corp, Koninklijke Philips, SGS, LG Electronics, Sodexo, UBS Group, Thai Oil PCL, METRO, Nestle, Abbott Laboratories, Unilever NV, Swiss Re, Koninklijke DSM, Telenet Group Holding, Roche, Stockland, Industria de Diseno Textil, Advanced Semiconductor Engineering, Atos, Hewlett Packard Enterprise, Telecom Italia, PostNL, and Iberdrola.

Source: 3BL Media

Image Credit: RobecoSAM