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

Special Edition – Launch of Dow Jones Sustainability (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.

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 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.

I’m interested. What do I need to do and what is the timeline for 2013? 
The start of the questionnaire process will be on 4th April 2013 and the deadline for submission is 4th June 2013. The new index composition will be announced on 12th September 2013. If you did not receive an email copy of the questionnaire, please email index@robecosam.com

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.

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.

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.

Note: This information has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this document without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this document, and, to the extent permitted by law, PricewaterhouseCoopers Advisory Services Sdn Bhd, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this document or for any decision based on it. © 2013 PricewaterhouseCoopers Advisory Services Sdn Bhd. All rights reserved. "PricewaterhouseCoopers" and/or "PwC" refers to the individual members of the PricewaterhouseCoopers organisation in Malaysia, each of which is a separate and independent legal entity. Please see www.pwc.com/structure for further details.