What is the Dow Jones Sustainability Index (DJSI)?
The Dow Jones Sustainability Index (DJSI) is a platform that monitors companies' performance and financial structures based on determination and sustainability around the world. DJSI watches brands working in the field of sustainability in different sectors. In specific periods of each year, the most successful companies in terms of sustainability are reported. The platform launched in 1999 became the first index to measure sustainability in the international arena. It is a platform that includes the top 10% of the 2,500 most extensive stocks in the S&P Global Broad Market Index.
DJSI is an essential platform for sustainability practices to find long-term shareholders. It is critical to find resources and increase the number of projects regarding sustainability practices. At the same time, the ability of brands to reflect their sustainability practices in their investment portfolios has created a good resource for investors. The reports have been good reference points for investors integrating sustainability practices into their portfolios. The active participation of the investors was ensured with the reports. By encouraging companies and institutions to develop their sustainability practices, a multiplier effect will be achieved in the field of sustainability. As mentioned earlier, the reports prepared every year are published on DJSI's own website. Analyzes are made in 19 super sectors out of 58. As a result of research and analysis, leading brands and companies are determined. Items such as ethics, governance, financial activities, corporate social responsibility, risk management, climate change, human rights, and transparency are within the scope of the analysis.
Why is a Top Company and Institutions Important in the Dow Jones Sustainability Index?
DJSI is an important index that determines leaders within the business world. There are many sectors on the list, from the automotive industry to the bank, from the media to insurance, travel to chemistry, and real estate to infrastructure. Many companies that make successful investments and make breakthroughs can also be candidates. This ensures that companies are open to continuous improvement.
The number of companies on the list increased from 1386 in 2020 to 2270 in 2021. As of 2022, Microsoft Corp, Alphabet Inc., Unitedhealth Group Inc., Taiwan Semiconductor Manufacturing Co Ltd., and AbbVie Inc. are among the top 10 institutions in terms of weight and size of the index.
Brands that are members of the index see DJSI as an opportunity to show their shareholders their sensitivity towards the environment and society and raise awareness. They issue press releases to declare their environmental sustainability.
What is the Dow Jones Sustainability Index in Turkey?
Anadolu Efes was the first Turkish brand to enter DJSI, which ranks the world according to sustainability criteria. Under Positive Impact Plan, it carries out its activities in social areas such as savings, energy, emission management, product responsibility, human management, and reliability. Another brand that entered the index from Turkey was Garanti Bank. They succeeded in being on the list with their ethical studies, financing, environmental and social performances. In addition, they have achieved great success in the areas related to climate change with their measures, supply chain, respect for employees, and human rights.
Author:
Çağın Ergün
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