The Dow Jones Sustainability Indices (DJSI) are a family of best-in-class benchmarks for investors who have recognized that sustainable business practices are critical to generating long-term shareholder value and who wish to reflect their sustainability convictions in their investment portfolios.
In 2020, CIMIC Group was one of only eight engineering and construction companies globally to be recognised by DJSI as an industry leader in sustainability along with HOCHTIEF and ACS.
How does the rating work?
The DJSI is based on the SAM Corporate Sustainability Assessment (CSA)1
which undertakes a comprehensive evaluation of companies’ sustainability practices and performance.
The CSA applies a best-in-class approach, meaning no industries are excluded from the assessment, and the CSA compares companies across 61 industries via questionnaires assessing a mix of 80-100 cross-industry and industry-specific questions. On the basis of their performance, companies receive scores ranging from 0 to 100 and percentile rankings for approximately 20 financially relevant sustainability criteria across economic, environmental and social dimensions.
In Australia, 200 companies were invited to participate in 2020 and only 44 (including CIMIC Group) were included in the Dow Jones Sustainability Australia Index.
Why is the rating important and how is it used?
Interest in sustainable investing continues to increase, as many institutions and individuals seek to express their concerns about sustainability issues through their investments.
By analyzing corporate sustainability performance, investors can gain a better understanding of a company’s quality of management and future performance potential.
The DJSI is used by asset managers to benchmark the investment performance of their portfolios and by investors to choose which companies they want to invest in.
1 The DJSI was launched in 1999 as a collaboration between S&P Dow Jones Indices and RobecoSAM, a global investment company. In late 2019, S&P acquired the CSA methodology, the ESG Ratings and Benchmarking teams, and the related data operations.