The DJSI is a set of benchmark indices for responsible investment. These indices, whether regional or national, assess the performance of companies’ Economic, Social and Governance (ESG) criteria and enable investors to make informed decisions to encourage more responsible investment portfolios.
Who Reports?
DJSI is voluntary with no exclusion criteria. Approximately 4,500 companies are invited to respond annually, but only the top 2,500 global companies by market capitalisation are eligible for inclusion. Unlike the FTSE4Good, the DJSI sends a questionnaire for companies to complete rather than undertaking an assessment on publicly available information.
What is Reported?
The questionnaire covers three areas: Economic, Environmental and Social. 50% of the questionnaire is industry-specific allowing companies to be compared directly against their sector peers.
Where is it Reported
The top 10% of eligible companies benchmarked by DJSI are included in the annual DJSI World Index (i.e. the 250 highest benchmarked companies globally). All additions and deletions to the index are also noted. Companies are required to enhance and refresh their sustainability initiatives in order to ensure they remain included.
Companies can be deleted from the index if they fail to do so.
Benefits
- provides investors with a best-in-class benchmark
- helps investors to account for sustainability in their decision-making process
- well resourced, robust and well-respected methods of demonstrating environmental commitment
- standardised testing.
- industry-specific questionnaires allows for peer comparisons