What is the Dow Jones Sustainability Index?

Published on Thursday, 14 September 2023

“In the case of Dow Jones, the analysis is exhaustive and serves as a guide for continuous improvement for companies being evaluated by a completely impartial third party.”

– comments Paulina Musalem, Head of Sustainability Plan & Stakeholder Engagement, Enel Chile

Rewarding transparency

Additionally, indexes help companies anticipate trends; for instance, the DJSI started requesting metrics and information on climate change performance long before it became a regulatory requirement to provide such data. It also makes it possible to identify opportunities and reduce risks. In other words, if a low score is received in a certain area, the company can analyze why and how improvements can be implemented before the situation turns critical.

“It requires us to be more transparent because the high level of demand drives us to publish more information about our performance. It is very important to be transparent because by making our results available to everyone, access to this information becomes democratized, eliminating the privilege associated with it”

– adds Paulina.

The evaluation to determine whether or not a company will be included in the Dow Jones Sustainability Index is conducted by S&P Global, an international organization with sustainability specialists who assess companies from all over the world. To ensure the reliability of the ranking and avoid practices that could corrupt its results, external consulting firms audit the process and provide assurance for a fair, honest, and trustworthy competition.

Participation and good results in these types of benchmarks and indexes have become an opportunity for different companies to evolve towards increasingly transparent processes, strengthening their control methods, publishing verifiable information available to all their stakeholders, and driving continuous improvement to create value for all.