NEWS: Corporations Race Against Each Other for a Place in the Sustainability Index

Dispatch from SSC Intern Emilia Pramova

Popular big brands such as Coca Cola, Johnson & Johnson and Samsung Electronics have been added to a series of indices, which track the sustainability of large corporations, as BusinessGreen.com reports. The bad news is for brands such as National Grid and Mitsubishi that just got excluded.

33 new companies have been added to the Dow Jones Sustainability and Dow Jones STOXX Sustainability Indexes, while a further 33 companies including National Grid, Mitsubishi Estate and SABMiller have been deleted.

Companies that don't improve their performance every year can be deleted if their competitors have more aggressive targets. A lot of the deleted companies did not actually perform worse than the previous year, but just didn’t advance in terms of sustainability as fast as their peers. Now this is one competition that is healthy and green!

Dow Jones, together with another index provider STOXX and sustainable investment company SAM, coordinate a range of tables ranking companies according to criteria including code of conduct, environmental reporting and philanthropic efforts. The annual review is based on a thorough analysis of economic, environmental and social performance. Issues such as corporate governance, risk management, branding, climate change mitigation, supply chain standards and labor practices are evaluated.

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