Special Edition – Dow Jones Sustainability (DJSI) Emerging Markets Index

12 April 2013

Launch of DJSI Emerging Markets Index – The first index that recognises sustainability champions from emerging markets

Recently launched, the Dow Jones Sustainability Emerging Markets Index (DJSI Emerging Markets) tracks the financial and sustainability performance of the region’s largest companies. The index represents the largest 800 companies in 20 emerging economies based on long term economic, environmental and social criteria.

DJSI serves as a benchmark for investors who take into account sustainability performance in their investment decisions.

Out of the 800 emerging market companies that were eligible to participate in the 2012 Corporate Sustainability Assessment (CSA), only 69 were identified as sustainability leaders in their sector and were selected for membership. The top holdings include:

  • Taiwan Semiconductor Manufacturing Co Ltd
  • Industrial and Commercial Bank of China Ltd
  • China Mobile Ltd, Itau Unibanco S.A.
  • Petroleo Brasileiro S/A

Key features

What is the benefit of the newly launched Index for emerging markets?
It is easier for companies in emerging economies to compete in this Index compared to the World Index. Five Malaysian companies have already made it to the Emerging Markets Index out of the 69 companies. As the number of investors with an interest in sustainability is increasing significantly, companies in emerging economies should aim to pass the eligibility for this index to maintain competitiveness moving forward.

FAQs on the DJSI Emerging Markets Index:

1. Which Malaysian companies are invited to participate in 2014?
The following companies were invited to participate this year.

2. I’m interested. What do I need to do and what is the timeline for 2014?
The start of the online questionnaire process will be on 3rd April 2014 and the deadline for submission is 28th May 2014. The new index composition will be announced on 11th September 2014. If you did not receive an email copy of the questionnaire, please email indexes@robecosam.com and provide them with your email address to ensure that the questionnaire is sent to you correctly.

3. Which countries are considered Emerging Markets?
Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Malaysia, Mexico, Morocco, Peru, the Philippines, Poland, Russia, South Africa, Taiwan, Thailand and Turkey

4. How are companies’ sustainability performance evaluated?
Companies are evaluated using RobecoSAM’s annual CSA. The sources of information for the CSA are the RobecoSAM questionnaire as well as media and stakeholder analysis. The underlying research methodology accounts for general as well as industry-specific sustainability trends and evaluates corporations based on a variety of criteria including climate change strategies, energy consumption, human resources development, knowledge management, stakeholder relations and corporate governance.

5. Which companies are eligible for index inclusion?
Only companies whose Total Sustainability Score in the RobecoSAM CSA ranked in the top 10% in their sector are eligible for index inclusion. Therefore, companies must continuously improve their sustainability initiatives to be included or remain in the index.