djsi 2012 review results - s&p global · 2 key facts – sam indexes • cooperation between...

DJSI 2012

Review Results

A cooperation of S&P Dow Jones Indices and SAM

1

Content

• Key Facts

• Assessment 2012

• Overview of global and regional review results

• Additional Resources

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Key Facts – SAM Indexes

• Cooperation between SAM and S&P Dow Jones Indices for the publication and

licensing of the Dow Jones Sustainability Indexes (DJSI).

• Launched in 1999, the DJSI are the first global indexes tracking the financial

performance of the leading sustainability-driven companies worldwide.

• Broad family of global, regional and country DJSI benchmarks.

• 6 billion USD in DJSI-based investment vehicles including mutual funds,

separate accounts, notes, as well as exchange traded funds (ETF), in 15

countries worldwide.

• Local partnership with Korea Productivity Centre (KPC).

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Key Facts – Dow Jones Sustainability Indexes (DJSI)

• Integrated assessment of economic, environmental and social criteria with a

strong focus on long-term shareholder value.

• Consistent rules-based methodology, primary research (direct contact to

companies).

• Focus on best-in-class companies. Yearly review and continuous monitoring of

companies.

• Assurance of the assessment process by Deloitte.

Overview

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Assessment 2012 – DJSI Assessment Universe 2012

Number of invited companies

• Total number of invited companies = 3,208

• DJSI World Universe = 2,500

• DJSI Europe Universe = 600

• DJSI North America Universe = 600

• DJSI Asia Pacific = 600

• DJSI Korea = 200

Number of assessed companies

• Total number of companies analyzed = 1,544

• Completed questionnaires = 790

• Completed assessments based exclusively on public information = 754

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In 2012, for the first time, SAM has opened up part of the reporting criteria for company input in order to be able to assess reporting on materiality analysis as well as links between companies’ sustainability initiatives and their financial performance in a more comprehensive manner. At the same time, the focus on integrated reporting remains, as the questions are looking for reporting both in the Annual Report and in the Sustainability Report.

Specifically, the new questions focus on reporting on frameworks for materiality analysis as well as specific examples relating to sustainability initiatives leading to cost savings and revenue generation for the company.

Social / EnvironmentalReporting

For the 2012 assessment, SAM made a complete review of the criterion ‘Standards for Suppliers’ and based on this review the new criterion ‘Supply Chain Management’ was developed. The rationale for the new criteria is that companies are not only outsourcing production, services and business processes but also corporate responsibilities and reputational risks. This means that the risks and opportunities associated with the supply chain need to be managed carefully. The new framework consists of four major parts: supply chain awareness and risk exposure, risk management, sustainability strategy and opportunities in the supply chain and transparency with regards to supply chain risks and performance.

Supply Chain Management

Criteria Key changes compared to 2011

Assessment 2012 - Criteria Changes (1)

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SAM believes that companies that have a long-term commitment to equal gender opportunities reap the benefits by turning the resulting senior management diversity into a competitive advantage. In this year’s assessment, the approach was refined and updated by looking at two main indicators for gender equality: retention of female talent and equal remuneration.

Labor Practice Indicators & Human Rights

In addition to the changes to the general criteria described above, a set of sector specific and cross-industry criteria were introduced or significantly improved. These criteria include Strategy for Emerging Markets (for selected industrial sectors), Antitrust Policy (across several sectors), Fleet Management (airlines), Online Risks & Opportunities (media), Human Rights – freedom of expression & privacy (selected technology sectors) and Innovation Management (healthcare).

Various sector specificcriteria

In light of the “UN Framework and Guiding Principles on Business and Human Rights” (“the Ruggie framework”) which was endorsed by the UN Human Rights’Council in June 2011, SAM introduced a new question on the topic. The question assesses the degree of awareness and adoption of the “Ruggie Framework”.

Labor Practice Indicators & Human Rights

Criteria Key changes compared to 2011

Assessment 2012 - Criteria Changes (2)

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Assessment 2012 - Global Supersector Leaders (1)

Effective as of September 24, 2012

Industrial Goods & ServicesGermanySiemens AG

HealthcareSwitzerlandRoche Holding AG

Food & BeverageNetherlandsUnilever NV

Financial ServicesBrazilItausa - Investimentos Itau SA

Construction & MaterialsSouth KoreaGS Engineering & Construction Corp

ChemicalsNetherlandsAkzo Nobel NV

Basic ResourcesFinlandUPM-Kymmene OYJ

BanksAustraliaAustralia & New Zealand Banking Group Ltd

Automobiles & PartsGermanyBayerische Motoren Werke AG

SUPERSECTORCOUNTRYNAME

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Assessment 2012 - Global Supersector Leaders (2)


Travel & LeisureFranceAir France-KLM

UtilitiesSpainIberdrola SA

TelecommunicationsSouth KoreaKT Corp

TechnologyFranceAlcatel-Lucent SA

RetailSouth KoreaLotte Shopping Co Ltd

Real EstateAustraliaGPT Group

Personal & HouseholdNetherlandsKoninklijke Philips Electronics NV

Oil & GasSpainRepsol SA

MediaNetherlandsTelenet Group Holding NV

InsuranceSwitzerlandSwiss Re AG


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Assessment 2012 – DJSI Index Range


Index Components

Free-float market cap Sustainability Score

DJSI World 340 ��

DJSI World Enlarged 592 ��

DJSI World ex US 278 ��

DJSI World 80 80 ��

DJSI World ex US 80 80 ��

DJSI Europe 166 ��

DJSI Eurozone 96 ��

DJSI Europe 40 40 ��

DJSI Eurozone 40 40 ��

DJSI North America 140 ��

DJSI United States 117 ��

DJSI North America 40 40 ��

DJSI United States 40 40 ��

DJSI Asia Pacific 154 ��

DJSI Asia Pacific 40 40 ��

DJSI Japan 40 40 ��

DJSI Korea 52 ��

DJSI Korea 20 20 ��

Weighted by

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DJSI World – Index Range

338 ComponentsDJSI World ex Tobacco

325 ComponentsDJSI World ex Gambling

305 ComponentsDJSI World ex Alcohol, Tobacco, Gambling, Armaments & Firearms

296 ComponentsDJSI World ex Alcohol, Tobacco, Gambling, Armaments & Firearms, Adult

Entertainment

80 ComponentsDJSI World 80

80 ComponentsDJSI World ex US 80

340 ComponentsDJSI World


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DJSI World – Largest Additions & Deletions

TechnologyUnited StatesDell Inc

BanksFranceSociete Generale SA

Industrial Goods/SvcJapanMitsubishi Corp

InsuranceNetherlandsING Groep NV

BanksSwitzerlandUBS AG

UtilitiesUnited StatesDuke Energy Corp

TelecommunicationsSpainTelefonica SA

Industrial Goods/SvcUnited StatesUnited Technologies Corp

Health CareUnited KingdomGlaxoSmithKline PLC

TechnologyUnited StatesInternational Business

Machines Corp


Industrial Goods/SvcUnited StatesEcolab Inc

Oil & GasUnited StatesBaker Hughes Inc

Oil & GasCanadaCenovus Energy Inc

ChemicalsGermanyLinde AG

Oil & GasCanadaEnbridge Inc

TechnologyUnited StatesHewlett-Packard Co

RetailSwedenHennes & Mauritz AB

RetailUnited StatesTarget Corp

Industrial Goods/SvcCanadaCanadian National Railway Co

TechnologyUnited StatesMicrosoft Corp


Largest 10 Additions (Listed by descending Free Float Market Capitalization)

Largest 10 Deletions (Listed by descending Free Float Market Capitalization)

Values as of August 31, 2012

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DJSI World – Selection

2,500 largest companies of theDow Jones Total Global Stock Market Index58 DJSI Sectors52 Countries

Selection of top 10% in terms of Sustainability in each sector

15% target marketcap coverage ineach supersector

340 Components58 DJSI Sectors30 CountriesReview 2012: 41 ADD / 41 DEL

DJSI World


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DJSI World – Performance

Since Launch, 08/99 – 08/12 (EUR, Total Return)

40

60

80

100

120

140

Aug-99 Oct-01 Dec-03 Feb-06 Apr-08 Jun-10 Aug-12

Dow Jones Sustainability World Index (in EUR, TR)

MSCI World (in EUR, TR)

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DJSI Europe – Index Range

145 ComponentsDJSI Europe ex Alcohol, Tobacco, Gambling, Armaments & Firearms

139 ComponentsDJSI Europe ex Alcohol, Tobacco, Gambling, Armaments & Firearms, Adult Entertainment

40 ComponentsDJSI Europe 40

96 ComponentsDow Jones Sustainability Eurozone Index (DJSI Eurozone)

84 ComponentsDJSI Eurozone ex Alcohol, Tobacco, Gambling, Armaments & Firearms

80 ComponentsDJSI Eurozone ex Alcohol, Tobacco, Gambling, Armaments & Firearms, Adult Entert.

40 ComponentsDJSI Eurozone 40

166 ComponentsDow Jones Sustainability Europe Index (DJSI Europe)


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DJSI Europe – Largest Additions & Deletions

Basic ResourcesFinlandUPM-Kymmene OYJ

Industrial Goods/SvcSpainAmadeus IT Holding SA

InsuranceNetherlandsAegon NV

TelecommunicationsSwitzerlandSwisscom AG

TelecommunicationsNorwayTelenor ASA

RetailNetherlandsKoninklijke Ahold NV

Basic ResourcesLuxembourgArcelorMittal

Industrial Goods/SvcUnited KingdomBAE Systems PLC

ChemicalsGermanyLinde AG

Oil & GasUnited KingdomBG Group PLC


Industrial Goods/SvcSwedenSandvik AB

Industrial Goods/SvcGermanyDeutsche Post AG

UtilitiesGermanyRWE AG

BanksFranceSociete Generale SA

Personal &

Household GoodsFranceL'Oreal SA

ChemicalsSwitzerlandSyngenta AG

RetailUnited KingdomTESCO PLC

Personal &

Household GoodsFrance

LVMH Moet Hennessy Louis

Vuitton SA

UtilitiesGermanyE.ON AG

BanksUnited KingdomHSBC Holdings PLC





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DJSI Europe – Selection

600 largest European companies of theDow Jones Total Global Stock Market Index54 DJSI Sectors16 Countries



166 Components50 DJSI Sectors16 CountriesReview 2012: 17 ADD / 23 DEL

DJSI Europe


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DJSI Europe - Performance

01/06 – 08/12 (EUR, Total Return)*

40

60

80

100

120

140

Jan-06 Feb-07 Mar-08 Apr-09 May-10 Jun-11 Jul-12

Dow Jones Sustainability Europe Index (EUR, TR)

DJ STOXX 600 (EUR, TR)

* Based on backtracking data

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DJSI Asia/Pacific – Index Range

40 ComponentsDJSI Japan 40

40 ComponentsDJSI Asia Pacific 40

138 ComponentsDJSI Asia Pacific ex Alcohol, Tobacco, Gambling, Armaments & Firearms

154 ComponentsDJSI Asia Pacific


20

DJSI Asia/Pacific – Largest Additions & Deletions

Real EstateJapanTokyu Land Corp

Construction & MaterialsJapanKajima Corp

ChemicalsJapanJSR Corp

Health CareJapanSysmex Corp

ChemicalsAustraliaIncitec Pivot Ltd

InsuranceSouth Korea

Samsung Life Insurance

Co Ltd

ChemicalsJapanNitto Denko Corp

Basic ResourcesTaiwanChina Steel Corp

UtilitiesHong KongPower Assets Holdings Ltd

Food & BeverageJapanKirin Holdings Co Ltd


Personal & Household

GoodsJapanSekisui Chemical Co Ltd

ChemicalsJapanKuraray Co Ltd

InsuranceJapanT&D Holdings Inc

Automobiles & PartsJapan

Sumitomo Electric

Industries Ltd

Basic ResourcesJapanNippon Steel Corp

InsuranceAustraliaAMP Ltd

Industrial Goods/SvcJapanITOCHU Corp

Basic ResourcesAustraliaNewcrest Mining Ltd

Health CareAustraliaCSL Ltd

Industrial Goods/SvcJapanMitsubishi Corp





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DJSI Asia/Pacific – Selection

600 largest companies from the developed Asia Pacific* countries56 DJSI Sectors7 Countries



154 ComponentsDJSI Sectors

44 CountriesReview 2012: 14 ADD / 15 DEL

DJSI Asia

Pacific

* 600 largest companies from Australia, Hong Kong, Japan, New Zealand, Singapore, South Korea and TaiwanEffective as of September 24, 2012

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DJSI Asia/Pacific – Performance

Since Launch, 01/09 – 08/12 (USD, Total Return)

80

100

120

140

160

180

Jan-09 Mar-10 May-11 Jul-12

DJSI Asia/Pacif ic Total Return (USD)

MSCI Asia Pacif ic

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DJSI North America – Index Range

117 ComponentsDJSI United States

40 ComponentsDJSI United States 40

40 ComponentsDJSI North America 40

107 ComponentsDJSI United States ex Alcohol, Tobacco, Gambling, Armaments & Firearms

130 ComponentsDJSI North America ex Alcohol, Tobacco, Gambling, Armaments & Firearms

140 ComponentsDJSI North America


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DJSI North America – Largest Additions & Deletions

TechnologyUnited StatesIntuit Inc

TechnologyUnited StatesDell Inc

UtilitiesUnited StatesConsolidated Edison Inc

Health CareUnited StatesAllergan Inc

Financial ServicesUnited States

Bank of New York Mellon

Corp

Oil & GasCanadaTransCanada Corp

Basic ResourcesUnited States

Freeport-McMoRan Copper

& Gold Inc

ChemicalsCanada

Potash Corp of

Saskatchewan Inc

MediaUnited StatesTime Warner Inc

TelecommunicationsUnited StatesVerizon Communications Inc


MediaUnited StatesLiberty Global Inc

Industrial Goods/SvcUnited StatesWaste Management Inc

Industrial Goods/SvcUnited StatesTE Connectivity Ltd

Industrial Goods/SvcUnited StatesEcolab Inc

Oil & GasCanadaEnbridge Inc

Basic ResourcesCanadaGoldcorp Inc

ChemicalsUnited States

EI du Pont de Nemours &

Co

Personal &

Household GoodsUnited StatesAltria Group Inc

TechnologyUnited StatesMicrosoft Corp

Oil & GasUnited StatesExxonMobil Corp





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DJSI North America – Selection

600 largest North American companies* of the Dow Jones Total Global Stock Market Index55 Sectors2 Countries



140 Components49 DJSI Sectors

Review 2012: 17 ADD / 16 DEL

DJSI North

America

* 600 largest companies from Canada and the United StatesEffective as of September 24, 2012

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DJSI North America – Performance

Since Launch, 09/05 – 08/12 (USD, Total Return)

40

60

80

100

120

140

Sep-05 Jun-06 Mar-07 Dec-07 Sep-08 Jun-09 Mar-10 Dec-10 Sep-11 Jun-12

DJSI North America (TR, USD)

DJTSM US LrgTr (TR, USD)

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DJSI Korea – Index Range

20 ComponentsDJSI Korea 20

52 ComponentsDJSI Korea


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DJSI Korea – Largest Additions & Deletions

Construction &

MaterialsSouth KoreaAsia Cement Co Ltd

MediaSouth KoreaWoongjin Thinkbig Co Ltd

Financial ServicesSouth KoreaDaishin Securities Co Ltd


Industrial Goods/SvcSouth KoreaHanjin Shipping Co Ltd

Construction &

MaterialsSouth KoreaKCC Corp

InsuranceSouth Korea

Samsung Life Insurance Co

Ltd




*Market Capitalization taken as of August 31, 2012

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DJSI Korea – Selection

200 largest Korean companies of the Dow Jones Total Global Stock Market Index44 DJSI Sectors



52 Components27 DJSI Sectors


DJSI Korea


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DJSI Korea – Performance

Since Launch, 10/09 – 08/12 (KRW, Total Return)

60

80

100

120

140

160

180

200

Dec-05 Jan-07 Feb-08 Mar-09 Apr-10 May-11 Jun-12

DJSI Korea Total Return (KRW)

DJ Korea TSM Total Return (KRW)

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Australian SAM Sustainability Index (AuSSI)Largest Additions & Deletions

Health CareAustraliaCochlear Ltd

Oil & GasAustraliaWorleyParsons Ltd

BanksAustralia

National Australia

Bank Ltd


Basic ResourcesAustraliaPanAust Ltd

RetailAustraliaMetcash Ltd

Basic ResourcesAustraliaIluka Resources Ltd





32

AuSSI – Selection

200 largest Australian companies of the Dow Jones Total Global Stock Market Index20 AuSSI Sectors



59 Components19 AuSSI Sectors


AuSSI


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AuSSI – Performance

Since Launch, 17/02/05 – 08/12 (AUD, Total Return)

80

100

120

140

160

180

200

Feb-

05

Sep-

05

Apr-

06

Nov-

06

Jun-

07

Jan-

08

Aug-

08

Mar-

09

Oct-

09

May-

10

Dec-

10

Jul-

11

Feb-

12

Sep-

12

AuSSI Total Return (AUD)

ASX 200 Total Return (AUD)

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Additional Resources – DJSI 2012

DJSI Licensees can access a full component list at:

• http://www.sustainability-indexes.com/index/index.jsp

Companies who would like further information on the Corporate Sustainability

Assessment (CSA) can find more details at:

• https://assessments.sam-group.com/

Further information about the 2012 DJSI Review:

• http://www.sustainability-indexes.com/review/annual-review-2012.jsp

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SAM Sustainable Asset Management AG

Josefstrasse 218

8005 Zurich

Switzerland

Phone: +41 44 653 1800

Fax: +41 44 653 1810

E-Mail: [email protected]

www.sam-group.com,

www.sustainability-indexes.com

Additional Resources – Contact Details

djsi 2012 review results - s&p global · 2 key facts – sam indexes • cooperation between...

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