RobecoSAM, S&PDJI introduce EM-focussed sustainability index
26 February 2013
News, Asia, Global, Emerging Markets
By Asia Asset Management
RobecoSAM and S&P Dow Jones Indices have launched the Dow Jones Sustainability Emerging Markets Index (DJSI Emerging Markets). The DJSI Emerging Markets offers investors a tool for measuring the performance of companies that RobecoSAM has recognised as leaders compared to their peers in terms of corporate sustainability, and it also provides an effective engagement platform to encourage companies from emerging markets to adopt sustainable best practices.
Although much progress has been made in terms of political and economic stability, many companies in emerging markets continue to operate in challenging surroundings. The DJSI Emerging Markets seeks to identify corporate sustainability leaders by drawing on RobecoSAM’s extensive experience in measuring intangibles through the annual Corporate Sustainability Assessment (CSA). For example, RobecoSAM has identified resource efficiency as a potential driver of corporate success in the emerging markets based on the important role commodities play in the regional value chain.
Guido Giese, head of indexes, RobecoSAM, said: “The steady increase in the number of emerging market companies that participate in our CSA shows that businesses around the world are embracing sustainable practices as an important factor in their future competitive position. As the emerging markets have come of age, demand for a regional benchmark for sustainability investors has increased and we can now offer an appropriate product.”
Alka Banerjee, vice president of global equity indices at S&P Dow Jones Indices, said: “An important strategic reference point for sustainability investors around the globe, the DJSI are continuously advanced to respond to market trends and requirements. The DJSI Emerging Markets, the first index of its kind in the market, is launched in response to the evolving needs of the global investment community.”
In the emerging markets universe, only the companies whose ‘total sustainability score’ in RobecoSAM’s corporate sustainability assessment, based on the company's participation and/or publicly available information, ranks them among the top 10% in their sector are eligible for index inclusion.
Out of a total of 800 emerging market companies that were eligible to participate in the 2012 CSA, 69 were identified as sustainability leaders in their respective sector and selected for index membership. As a result, the DJSI Emerging Markets tracks the performance of those leading companies from 20 developing economies. Like the existing DJSI Family, the new index can be customised to meet investor requirements with regard to value or faith based motivated exclusions or specific geographical subsets.
DJSI Emerging Markets at a glance:
Launch date: February 21
Market capitalisation: US$681 billion (as of January 31)
- Taiwan Semiconductor Manufacturing Co.
- Industrial & Commercial Bank of China
- China Mobile
- Itau Unibanco
- Petroleo Brasileiro
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