Socially Responsible Companies: H&M Included in the Dow Jones Sustainability World Index

H&M has been included in the Dow Jones Sustainability World Index (DJSI) in 2012. It lists the most sustainable socially responsible companies per sector, based on an extensive annual assessment conducted by the independent asset managers at SAM. This esteemed acknowledgement for H&M comes after the brand had been awarded as "sector mover 2012" in SAM´s Sustainability Yearbook 2012. H&M was the single company with the highest increase in performance scores in the sustainability sector.

The DJSI was launched in 1999 as the first global sustainability benchmark. The DJSI family is offered cooperatively by SAM Indexes and S&P Dow Jones Indices. The family tracks the stock performance of the world's leading companies in terms of economic, environmental and social criteria. The indexes serve as benchmarks for investors who integrate sustainability considerations into their portfolios, and provide an effective engagement platform for socially responsible companies who want to adopt sustainable best practices. Helena Helmersson, Head of Sustainability at H&M, says, “This is great news and an acknowledgement of H&M's efforts within sustainability."

The indexes' best-in-class approach means that they include only socially responsible companies that fulfil certain sustainability criteria better than the majority of their peers. Why best-in-class? Well, because sector-specific sustainability opportunities and risks can play a key role in companies' long-term success. Apart from selecting the sustainability leaders on the basis of clearly defined criteria, the best-in-class approach also provides SAM with the opportunity to conduct a dialogue with companies from all sectors and influence improvements in companies' sustainability practices.

Thanks to the best-in-class approach, a vibrant buzz among companies for inclusion in the DJSI has been created. SAM believes this approach will benefit all stakeholders from investors, employees, customers, society and the environment. The DJSI and respective subsets track the performance of the top 10% of the 2500 largest companies in the Dow Jones Global Total Stock Market Index that lead the field in terms of sustainability.

The DJSI is becoming important to investors, who are diversifying their portfolios by investing in socially responsible companies that set industry-wide best practices with regard to sustainability. The concept of corporate sustainability is attractive to investors because they want to increase long-term shareholder value. Plus, because now corporate sustainability performance can be financially quantified, it means they have an investable corporate sustainability concept. Investors are convinced that sustainability is a catalyst for enlightened and disciplined management, and, a crucial success factor. The DJSI will provide investors and companies with insight into the trends and events driving global supply and demand of sustainable products, and services.

Photo Credit: The Dow Jones Sustainability World Index Website