Annual shake-up of DJSI sees Intel Corp, Samsung and British American Tobacco all deleted from world group
Oil giant Royal Dutch Shell and software developer Adobe have made the grade as two of the largest additions to the World Group of the annual S&P Dow Jones Sustainability Indices (DJSI).
Meanwhile, the latest annual shake-up of the DJSI released yesterday also left Intel Corp, Samsung Electronics Ltd and British American Tobacco plc as the largest companies to lose out, with all three cut from the 2016 world group index.
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However, having been deleted from the world list last year alongside PepsiCo and Diageo, IT company Cisco Systems this year bounced back as one of the top three largest additions to the World Group.
Launched in 1999, the annual review of companies listed under the DJSI is conducted by investment firm RobecoSAM in order to provide an insight into the business practices of some of the world's largest companies.
The world's largest 3,400 companies from developed and emerging markets were invited by RobecoSAM to take part in its annual assessment, which looks at corporate governance, crisis management and environmental policy.
The DJSI includes 24 sector-specific indices, with companies scoring in the top 10 per cent of each industry group also included in the World Group. Other companies includes in the 2016 world index include household products giant Unilever, consumer services firm Sodexco and German car company BMW.
According to RobecoSAM, the indices suggest appetite for sustainability is on the rise, with companies scoring highest in 2016 in environmental policy and management systems, codes of business conduct and corporate governance.
"With 2016 likely to be the hottest year on record, investors are again reminded that companies' environmental and sustainability efforts are crucial to their financial outcomes," said David Blitzer, managing director and chairman of the Index Committee, S&P Dow Jones Indices.
The component lists for each sector index are set to be published on Monday 12 September, although unlike some other corporate sustainability indices the DJSI does not exclude any industry on ethical grounds.
Drinks giant Coca-Cola HBC topped the beverage industry sustainability index, while it also made the world list for the ninth year running, achieving a total score of 90.
Last year, Coca-Cola said it achieved a double-digit cut in its carbon emissions and became one of the first 12 companies in the world to establish science-based targets for carbon reduction for both its direct and indirect operations.
Within the utilities sector index meanwhile, ScottishPower's Spanish parent company Iberdrola took the top spot with a score of 91 points.
The company, which owns and operates 25,000MW of renewable electricity capacity, said it was the only European electrical utility to have been included in all 17 editions of the DJSI.
"The DJSI has acknowledged Iberdrola for its policies, which are geared towards combating climate change, investing in renewable energy, developing human capital, protecting biodiversity, engaging with stakeholders, managing the supply chain, attracting and retaining talent, and implementing solid codes of conduct," Iberdrola said in a statement.
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