S&P Dow Jones Indices announced the results of its annual rebalancing and reconstitution assessments of its preeminent Dow Jones Sustainability Indices (DJSI).
The DJSI are a series of indices designed to allow the creation of portfolios that integrate sustainability considerations by tracking the performance of the world’s leading companies in terms of environmental, social and governance criteria.
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 2021 review, 5,300 companies eligible for inclusion were invited to participate, with a record 1,843 completing the rigorous CSA questionnaire, an increase of 33% over the prior year.
S&P Global stated that updated ESG Scores will be accessible on the S&P Global Capital IQ Pro platform and on the S&P Global Sustainable1 website as of November 20th. The company announced earlier this year the launch of publicly available access to S&P Global ESG Scores on 9,200 companies.
The company also announced a new feature this year, with CSA participants given the option for S&P Global to share a larger amount of underlying non-public datapoints submitted with the CSA on the Capital IQ Pro platform, with 1,084 companies opting in.
Among the highest profile additions and to the Dow Jones Sustainability World Index (DJSI World) this year include the return of Google parent Alphabet, which had been removed last year, as well as Medtronic and Gilead Sciences. The largest deletions by market cap include Nestlé, TotalEnergies, and Humana.
Top additions and deletions from the DJSI indices include:
- Additions: Alphabet, Medtronic, Gilead Sciences, Bank of Montreal, Autodesk
- Deletions: Nestlé, TotalEnergies, Humana, Danone, Dow
DJSI North America:
- Additions: Alphabet, Qualcomm, ServiceNow, Lam Research, Autodesk
- Deletions: Citigroup, Schlumberger, ONEOK, Kroger, Weyerhauser
- Additions: Prosus, Iberdrola, Reckitt Benckiser, Sika, Vestas Wind Systems
- Deletions: TotalEnergies, Schneider Electric, Compagnie De Saint Gobain, Sandvik, Credit Suisse Group
DJSI Asia Pacific:
- Additions: Softbank, Mitsui & Co, Woolworths, Kakao, Shiseido Company
- Deletions: DBS Group, Mizuho Financial Group, Kao Corporation, Asahi Group Holdings, Aeon Co
DJSI Emerging Markets:
- Additions: Yandex, United Microelectronics, JSW Steel, WuXi AppTec, AngloGold Ashanti
- Deletions: Suzano, WH Group, Nedbank Group, Ayala Corporation, Interconexion Electrica
DJSI Mila Pacific Alliance:
- Additions: Grupo Aeroportuario del Pacifico, Grupo Energia Bogota, Bolsa Mexicana de Valores, InRetail Peru, Banco BBVA Peru
- No deletions