Dow Jones Sustainability Indices in Global Markets

The Dow Jones Sustainability Indices are a family of indices that evaluate the sustainability performance of thousands of companies worldwide. They are widely recognized as a benchmark for responsible investing.

These indices are calculated by S&P Dow Jones Indices, a leading global index provider. They are designed to provide investors with a comprehensive view of a company's sustainability performance.

The Dow Jones Sustainability Indices are used by investors to make informed decisions about their investments. They are also used by companies to measure their sustainability performance and identify areas for improvement.

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ESG indexes are a type of investment index that focuses on environmental, social, and governance factors. They are developed by academics rather than professional analysts.

ESG indexes give more weight to specific criteria, such as environmental or social metrics, rather than corporate governance criteria. This means that investors need to have knowledge of ESG theory to interpret the data provided in the index.

ESG indexes are typically measured using 24 different criteria, which fit into three broad categories: environment, social, and corporate governance.

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The Dow Jones Sustainability Index World, or DJSI World, is a benchmark for companies that excel in economic, environmental, and social criteria. It was first published in September 1999.

It covers the top 300 companies from the Dow Jones Global Total Stock Market Index, which represents the largest 2,500 companies globally. Consumer discretionary is the most represented sector in the index.

The DJSI World has two subset indices, the Dow Jones Sustainability Index World 80 (DJSI World 80) and the Dow Jones Sustainability Index World ex US 80 (DJSI World ex US 80), which were initially published in August 2008. These subsets track the performance of the largest 80 companies globally in terms of sustainability.

Both the DJSI World and its subsets are reviewed on an annual basis.

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ESG indexes are a type of index that focuses on environmental, social, and governance factors, giving more weight to specific criteria. They're developed by academics, which means investors need to understand ESG theory to interpret the data.

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ESG indexes are measured using 24 different criteria, grouped into three categories: environment, social, and corporate governance. These criteria include greenhouse gas emissions intensity, labor practices, and board structure independence ratio.

ESG indexes typically give more weight to environmental or social metrics rather than corporate governance criteria. This is in contrast to the Dow Jones Sustainability Index, which gives a higher weighting to corporate governance.

The Dow Jones Sustainability Index is made up of ten different indices, each measuring a different aspect of a company's performance. One of these indices, the economic dimension, accounts for around 50% of how a company is scored.

ESG indexes use both quantitative data, such as the number of steps a company takes to tackle climate change, and qualitative information, like the type of environmental policies in place. This provides a more comprehensive picture of a company's ESG performance.

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The Dow Jones Sustainability Indices are important because they provide awareness for investors and clients about the performance of companies that meet their standards of sustainability. This awareness can help investors make informed decisions about where to put their money.

The DJSI is one of many indices used by professional investors as a measure of how companies may perform in the future. It can be used to compare and contrast different companies on their ability to create long-term value and meet the needs of all stakeholders.

The S&P Dow Jones Indices LLC has a code of ethics that assesses companies against environmentally sound principles, labor standards, and anti-corruption measures.

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The Dow Jones Sustainability Asian Pacific Index, also known as DJSI Asia Pacific, was launched in January 2009.

This index tracks the leading 20 percent of the top-600 companies in developed Asia Pacific Markets in terms of sustainability, as derived from the DJGTSMI.

It includes 122 companies, making it a comprehensive representation of the region's sustainability leaders.

Both the DJSI Asia Pacific and its subset, the Dow Jones Sustainability Asia Pacific 40 Index, track the financial performance of companies in the region.

The Dow Jones Sustainability Asia Pacific 40 Index, also known as DJSI Asia Pacific 40, was launched at the same time as its parent index in January 2009.

It tracks the largest 40 companies who are sustainability leaders in the Asia Pacific region.

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The Dow Jones Sustainability North America Index reviews the top-20 percent of the 600 largest companies in North America.

It was originally launched in September 2005, along with its subset Dow Jones Sustainability United States Index (DJSI United States).

Both indices are further broken down by the Dow Jones Sustainability North America 40 Index (DJSI North America 40) and the Dow Jones Sustainability United States 40 Index (DJSI United States 40), which cover the leading 40 sustainability driven companies in North America and the United States, respectively.

These subsets were not launched until August 2008, three years after the DJSI North America.

The Dow Jones Sustainability Index (DJSI) is a measure of how well companies perform in terms of sustainability, and its importance lies in providing awareness for investors about companies that meet their standards.

The DJSI uses ten different indices to measure company performance, and each index has specific criteria, such as favorable long-term prospects.

The DJSI's code of ethics assesses companies against environmentally sound principles, labor standards, and anti-corruption measures, which are measured against other companies in the same industry.

Companies that score high on the DJSI are more likely to become sustainable investment candidates, and the index can be used to compare and contrast different companies on their ability to create long-term value.

The S&P Dow Jones Indices LLC has a code of ethics that is used by their family of sustainability indices, and the DJSI can be used as a way to determine whether a company is a worthy investment.

The DJSI's criteria are measured using information from company reports, international organizations, and third-party research providers, and each index has a specific set of metrics that they will assess.

Wuxi AppTec's inclusion in the DJSI is a positive indicator of the company's long-term viability and attractiveness to investors, and the company's consistent recognition by global ESG rating agencies suggests that it is effectively managing its environmental, social, and governance risks.

The DJSI can be used to compare and contrast different companies on their ability to create long-term value and meet the needs of all stakeholders, including employees, suppliers, customers, and investors.

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Assessment is a critical part of evaluating a company's sustainability performance. ESG indexes measure companies using 24 different criteria that fit into three broad categories: environment, social, and corporate governance.

The criteria used in ESG indexes are specific and measurable, allowing for a fair assessment of a company's performance. Companies are measured on greenhouse gas emissions intensity, air pollution emissions intensity, water consumption intensity, and waste generation intensity, among other factors.

ESG indexes use a combination of quantitative and qualitative data to assess companies, making it a comprehensive evaluation process. This means that companies are not just judged on numbers, but also on their policies and practices.

Each index uses between 10 and 12 criteria within these categories to measure how well companies are performing. This ensures that companies are held to a high standard of sustainability.

The Dow Jones Sustainability Index (DJSI) uses ten different indices to measure how well companies are performing, with each index having its own specific set of metrics. The criteria used in each index are carefully selected to ensure a fair and accurate assessment of a company's sustainability performance.

The Dow Jones Sustainability Indices (DJSI) have faced criticism and challenges since their inception. Self-reported data from companies can be biased and unreliable, as companies with challenging corporate environmental and social issues may devote public relations resources to minimize the perception of risk within their operations.

The DJSI's reliance on self-reported data from companies leaves it exposed to corporate biases and credibility risks. This can lead to an underestimation of real risk factors in listed companies' operations, even when submitted information is verified by auditing firms.

The DJSI has also been criticized for its biased scoring system, which favors economic criteria over social and environmental ones. This imbalance can lead to a lack of trust in the index, with only 48 percent of sustainability experts considering it "highly trusted".

A major challenge to using the DJSI is its limited scope, which only includes publicly listed companies. This means that small companies, family-owned businesses, or privately held ones are not included, making the index less comprehensive than other sustainability indices.

The DJSI's scoring system also lacks transparency, as there is no breakdown of how each metric was scored within an index. This can lead to inconsistent and unpredictable scoring, making it difficult to compare companies across different markets and indices.

The index's reliance on publicly available information also means that it may not accurately reflect the sustainability performance of companies in emerging markets, where information may be scarce.

The Dow Jones Sustainability Index (DJSI) is not without its criticisms. One major issue is that it relies on self-reported data from companies, which can be biased and lack credibility. This is because companies with challenging corporate environmental and social issues may devote public relations resources to minimize the perception of risk within their operations.

This reliance on self-reported data leaves the index exposed to corporate biases and additional credibility risks. Companies with the greatest capacity to respond to the index's questionnaires and information requests are rewarded, rather than those with the best socially responsible practices.

A study found that only 48 percent of sustainability experts consider the DJSI as "highly trusted". This lack of trust is likely due to the index's limitations, including its bias towards economic criteria and its exclusion of smaller companies.

The DJSI's methodology has been criticized for not considering the three dimensions of sustainability in a balanced way, giving more weight to economic criteria than social and environmental ones.

Here is a breakdown of the types of documents used by the DJSI to assess companies:

Using the Dow Jones Sustainability Index (DJSI) can be a bit tricky due to its limitations. One of the major challenges is that it only includes publicly listed companies, which means small companies, family-owned businesses, or privately held ones are left out.

The DJSI doesn't provide a breakdown of how each metric was scored within an index, making it hard to understand the reasoning behind a company's score. This lack of transparency can lead to inconsistent scoring.

The index includes many different types of companies, which can result in a lack of data for specific industries. This can make it difficult to accurately measure companies against each other.

The DJSI also has limited coverage of emerging markets due to a lack of available information. This can make it hard to compare companies across different markets and indices.

The index doesn't examine the criteria used by other indices, such as energy intensity or greenhouse gas emissions. This can make it difficult to compare a company's scores across different markets and indices.

Wuxi AppTec has been recognized by the DJSI for the fourth consecutive year, showcasing its consistent commitment to sustainability.

The company has been making significant strides in its sustainability efforts, including ranking first in the Life Sciences Tools & Services sector in the 2024 S&P Global Corporate Sustainability Assessment.

Wuxi AppTec received an AA ESG rating from MSCI for the fourth consecutive year, demonstrating its strong commitment to environmental, social, and governance practices.

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This achievement is a testament to the company's dedication to sustainability, as it continues to prioritize its environmental and social responsibilities.

Here are some key highlights of Wuxi AppTec's sustainability achievements: