Blog | Dow Jones Sustainability Index, what is it and what does it evaluate?

Given the increasing relevance of ESG (Environmental, Social, and Governance)

spects for investors who integrate sustainability considerations into their investment portfolios, sustainable indices have been developed which evaluate the companies most committed to society and the planet.

One of them is the Dow Jones Sustainability Index or DJSI, which belongs to the family of S&P Global ESG indices, and can be understood as a variant of the New York Dow Jones stock index.

This index assesses the performance of the world's leading companies based on sustainable criteria classified in three dimensions: Economic dimension (which incorporates the corporate governance assessment), Social dimension, and Environmental dimension.

It should be noted that for companies to be listed as members of this group, they must meet certain requirements, among which are: having a floating market capitalization (within the series of global S&P Global BMI indices) higher than the minimum set by the rating agency and achieve a score high enough to be included in a subscript.

In order to belong to DJSI, companies must be invited by S&P Global to answer a rigorous evaluation questionnaire (“Corporate Sustainability Assessment”, or “CSA”), which includes items of different criteria.

Currently, only a select group of companies from all sectors make up this index, which implies a high acceptance by its stakeholders due to its good practices in terms of sustainability and places them as world references.

Composition of the Dow Jones Sustainability Indices:

  • DJSI World
  • DJSI Europe
  • DJSI North America
  • DJSI Asia Pacific
  • DJSI Emerging Markets
  • DJSI Korea
  • DJSI Australia
  • DJSI Chile