Dow Jones Sustainability Indices Annual Rebalance Adds Philip Morris, Tencent to Flagship ESG Benchmark

S&P Dow Jones Indices (S&P DJI) announced the results of its annual rebalancing and reconstitution of its flagship Dow Jones Sustainability Indices (DJSI), its series of global, regional and country benchmarks, measuring the performance of companies using ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. criteria.

High profile changes to the Dow Jones Sustainability World Index (DJSI World), which comprise the top 10% of the largest 2,500 companies in the S&P Global BMI based on long-term ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. criteria, include the addition of China-based technology platform company Tencent Holdings, tobacco company Philip Morris International, and U.S. software company ServiceNow, while each of the top 3 deletions, based on free-float market capitalization, were healthcare companies, including Novartis, AstraZeneca, and Amgen.

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 environmentalEnvironmental criteria consider how a company performs as a steward of nature., socialSocial criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. and governanceGovernance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights. 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 ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. Score, calculated under S&P Global’s annual Corporate Sustainability Assessment (CSA).

The Dow Jones Sustainability North America Index saw the addition of 17 companies, including The Coca-Cola Company, General Electric, and GE Healthcare Technologies, while DJSI Europe had 16 additions, including automakers Stellantis and Volvo Cars, and aerospace and defense companies Airbus and BAE Systems, and 12 companies were added to DJSI Asia Pacific, including Kia Corporation and Rio Tinto.

Click here to view the new component lists for DJIA indices, which also include indices for Emerging Markets, Korea, Australia, Chile and MILA.

The composition changes will be effective as of December 18, 2023.