S&P Dow Jones Indices (S&P DJI) announced the results of its annual rebalancing and reconstitution assessments of its preeminent Dow Jones Sustainability Indices (DJSI).
According to S&P DJI, the DJSI are a series of indices designed to allow the creation of portfolios of companies that fulfill certain sustainability criteria better than the majority of their peers within a given industry. S&P DJI created the index in 1999 in collaboration with Sustainable Asset Management Group (SAM), which is now a part of S&P Global.
The key factor in selecting constituents for a DJSI index is a company’s S&P Global ESG Score, calculated under SAM’s annual Corporate Sustainability Assessment (CSA). The annual CSA process begins in March each year, with new scores released in September. Overall, for the 2020 review, 3,429 companies were assessed, with a record 1,386 completing the rigorous CSA questionnaire, an increase of 19% over the prior year.
This year’s highest profile additions on the DJSI World index, based on free-float market capitalization are Humana, Ecolab, and Fast Retailing. The three largest deleted companies are Alphabet, Bank of America Corp, and United Parcel Service. Bank of America and UPS remain as members of DJSI World Enlarged and DJSI North America.
S&P DJI also provided the top additions and deletions by market cap for several of the indices, as follows:
- Additions: Humana, Ecolab, Fast Retailing, RELX PLC, Anglo American, Chugai Pharmaceutical Co, Yum China Holdings, Z Holdings, Las Vegas Sands, Swedbank.
- Deletions: Alphabet, Bank of America, UPS, Reckitt Benckiser, adidas, Takeda Pharmaceuticals, Westpac Banking, NTT DOCOMO, Ingersoll-Rand, Ball Corp.
- Additions: ASML Holding, Schneider Electric, Enel, Infineon Technologies, Vonovia.
- Deletions: Iberdrola, Reckitt Benckiser, Rio Tinto, adidas, Munich Re.
DJSI Asia Pacific:
- Additions: Oriental Land, Mitsubishi Estate, Z Holdings, Newcrest Mining, Ono Pharmaceutical.
- Deletions: POSCO, Lendlease Group, NH Foods, Sembcorp Industries, DGB Financial Group.
DJSI North America:
- Additions: Intel, Philip Morris, Regeneron, Micron Technology, Enbridge.
- Deletions: Alphabet, NIKE, QUALCOMM, Chevron, Bristol-Myers Squibb.
DJSI Emerging Markets:
- Additions: Yum China Holdings, ITC, Chailease Holdings, Suzano, Hero MotoCorp.
- Deletions: Ping An Insurance Group, Infosys, WEG, AngloGold Ashanti, Godrej Consumer Products.
DJSI MILA Pacific Alliance:
- Additions: Wal-Mart De Mexico, Sociedad Quimica y Minera de Chile, Ecopetrol, Qualitas Controladora, Genomma Lab Internacional.
- Deletions: Grupo Aeroportuario del Centro Norte SAB de CV, Rimac Seguros y Reaseguros.