Overview

The Dow Jones Sustainability Indexes are based on SAM’s internationally recognized leading Corporate Sustainability Assessment (CSA) methodology.

Independent research has recently reaffirmed the robustness and relevance of SAM’s Corporate Sustainability Assessment methodology in a growing and increasingly competitive space. In Rate the Raters, published in October 2010, the Dow Jones Sustainability Indexes were once again identified as the most credible sustainable rating approach amongst 100+ rating organizations surveyed by SustainAbility. Rate the Raters also noted that corporate sustainability rankings are increasingly influential amongst NGO groups, company employees, journalists and other stakeholders.

In addition, in early 2009, an independent expert study commissioned by the United Nations Environment Programme Finance Initiative and presented at the World Economic Forum in Davos highlighted the SAM Corporate Sustainability Assessment as “the most rigorous in terms of the number of questions and depth of information requested.”

The Corporate Sustainability Assessment provides companies with crucial insights into their sustainability performance. It makes companies aware of key sustainability issues to be considered in their corporate agenda.  

The results of the annual SAM Corporate Sustainability Assessment form the research backbone for the construction of the Dow Jones Sustainability Indexes. The family takes a best-in-class approach to selecting sustainability leaders from all industry sectors on the basis of defined sustainability criteria embedded in the SAM Corporate Sustainability Assessment.

The Best-in-Class Approach

The indexes’ best-in-class approach means that they include only companies that fulfill certain sustainability criteria better than the majority of their peers. No sectors are excluded from this process.

Why best-in-class? Because sector specific sustainability opportunities and risks play a key role in companies’ long-term success. Aside from the selection of 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 thereby influence incremental improvements in companies’ sustainability practices. Thanks to the best-in-class approach, a vibrant competition among companies for inclusion in the Dow Jones Sustainability Indexes has ensued. To be included or remain in the index, companies have to continually intensify their sustainability initiatives. SAM believes this approach will benefit all stakeholders: investors, employees, customers and, ultimately, society and the environment.