Question

Please name at least two sustainability indices.

2. Provide examples of each index in a real world context (list the context in which it was used, its value, and its significance in comparison to GDP)

Answer 1

There are many different types of sustainable indices. They are used to determine how sustainable a company’s performance is, and then this is compared to other companies around the world.

1. Dow Jones Sustainability World Index:

First launched in 1999, it was the first measurement of sustainability for companies, and uses the RobecoSAM Corporate Sustainability Assessment (CSA) to evaluate all companies’ sustainability practices. In order for a business to remain on this index, they must continue to improve their sustainable practices year to year.

The Dow Jones Sustainability Indices (DJSI) are a family of best-in-class benchmarks for investors who have recognized that sustainable business practices are critical to generating long-term shareholder value and who wish to reflect their sustainability convictions in their investment portfolios. The indices serve as benchmarks for investors who integrate sustainability considerations into their portfolios, and provide an effective engagement platform for investors who wish to encourage companies to improve their corporate sustainability practices.

The Dow Jones Sustainability Index family comprises global, regional, and country benchmarks as shown in the following list:

• DJSI World
• DJSI North America
• DJSI Europe
• DJSI Asia Pacific
• DJSI Emerging Markets
• DJSI Korea
• DJSI Australia
• DJSI Chile

For Investors who wish to limit their exposure to controversial activities, RobecoSAM and S&P Dow Jones Indices also offer the DJSI Indices with exclusion criteria such as Armaments & Firearms, Alcohol, Tobacco, Gambling and Adult Entertainment.

2. The AIChE Sustainability Index:

The AIChE Sustainability Index was developed by engineering and scientific experts for both engineering and scientific experts and enterprise managers.

The Index benchmarks well-defined performance metrics and indicators, including EH&S performance, innovation, and societal measures.

The metrics are based on over 30 sources of public data and allow companies to measure their efforts at the company and sector level. They factor technology and innovation into performance data and enable your company to:

1. Benchmark your performance among peers
2. Assess your performance against well-defined metrics on an on-going basis
3. Measure progress toward best practices at regular intervals
4. Access unbiased, expert interpretation of publicly available technical data
5. Better understand public perception of your company’s sustainability efforts