.JPG "KPI for Dow Jones Sustainability Indices (DJSI)")
Introduction Dow Jones Sustainability Indices (DJSI)
The Dow Jones Sustainability Indices (DJSI) evaluate the sustainability performance of companies based on various environmental, social, and governance (ESG) criteria.
While the specific KPIs used in the DJSI assessment are proprietary and may change over time, here are some common areas and indicators that are typically considered:
Dow Jones Sustainability Indices (DJSI)
Purpose: The Dow Jones Sustainability Indices (DJSI) measure the performance of companies leading in sustainability practices.
Key Features:
- Sustainability Focus: Prioritizes companies with excellent sustainability performance.
- Global Coverage: Includes companies from various regions and sectors.
- Investment Tool: Used to create sustainability-focused investment portfolios.
Table:
| Index Name | Description |
|---|---|
| Dow Jones World Index | Tracks the performance of global companies leading in sustainability practices. |
| Dow Jones North America Index | Focuses on North American companies with excellent sustainability performance. |
| Dow Jones Europe, Middle East, and Africa Index | Concentrates on companies in the EMEA region leading in sustainability. |
| Dow Jones Asia Pacific Index | Tracks the performance of Asia Pacific companies with strong sustainability practices. |
| Dow Jones Emerging Markets Index | Measures the performance of emerging market companies demonstrating sustainability leadership. |
| Dow Jones Sustainability Indices Industry Indexes | Provides sector-specific indices for various industries, such as Technology, Consumer Goods, and Financials. |
Note: This is a partial list of the Dow Jones Sustainability Indices. There are many other indices available, including region-specific and country-specific indices.
KPI Dow Jones Sustainability Indices (DJSI)
1. Climate Change:
- Greenhouse Gas (GHG) emissions: KPIs can include total emissions, emissions intensity, and reduction targets.
- Renewable energy: KPIs may assess the use of renewable energy sources and investments in renewable energy projects.
- Climate strategy: KPIs can evaluate the company's climate change mitigation and adaptation strategies, such as setting science-based targets.
2. Environmental Management:
- Resource efficiency: KPIs may measure energy and water consumption, waste generation, and recycling rates.
- Environmental impact: KPIs can assess the company's impact on biodiversity, land use, air and water pollution, and waste management practices.
- Environmental certifications: KPIs may consider certifications like ISO 14001 (Environmental Management System) or LEED (Leadership in Energy and Environmental Design).
3. Social Responsibility:
- Labor practices: KPIs can assess labor standards, employee health and safety, diversity and inclusion, and human rights policies.
- Supply chain management: KPIs may evaluate supplier assessment, responsible sourcing, and supplier diversity.
- Social impact: KPIs can measure community engagement, philanthropy, and social investment initiatives.
4. Governance and Ethics:
- Corporate governance: KPIs may assess board structure, independence, and diversity, as well as executive compensation practices.
- Ethics and compliance: KPIs can evaluate ethics policies, anti-corruption measures, and legal and regulatory compliance.
- Risk management: KPIs may consider the company's risk assessment and management practices related to ESG issues.
It's important to note that the specific KPIs and weightings used in the DJSI assessment are determined by the methodology of the index, which may change over time.
Companies are evaluated on their performance relative to their industry peers, and those with the highest scores are included in the DJSI.