DJSI 2015 Review Results. September 2015

Transcription

1 DJSI 2015 Review Results September 2015

2 Content Key Facts Assessment 2015 Overview of global and regional review results Additional Resources 2

3 Key Facts Dow Jones Sustainability Indices (DJSI) Overview Cooperation with S&P Dow Jones Indices for the publication and licensing of the DJSI. Launched in 1999, the DJSI were the first global indices tracking the financial performance of leading sustainability-driven companies worldwide. Integrated assessment of economic, environmental and social criteria with a strong focus on long-term shareholder value. Rules-based methodology and use of primary research. Focus on best-in-class companies. Yearly review of component selection and continuous monitoring of companies. Broad family of global, regional and country DJSI benchmarks. Assurance of the assessment process by Deloitte. Local partnership with Korea Productivity Centre (KPC). 3

4 Assessment 2015 Universe Number of invited companies Total number of invited companies = 3,470 DJSI World Universe = 2,500 DJSI Europe Universe = 600 DJSI North America Universe = 600 DJSI Asia Pacific Universe = 600 DJSI Emerging Markets Universe = 800 DJSI Korea Universe = 200 DJSI Australia Universe = 200 Number of assessed companies Total number of companies analyzed = 1,845 Completed questionnaires = 864 Completed assessments based exclusively on public information = 981 Source: RobecoSAM 4

5 Assessment 2015 Assessment Criteria Changes Criteria Key changes compared to 2014 Corporate Governance Risk & Crisis Management Corporate governance systems ensure that a company is managed in the interests of shareholders (including minority shareholders). On the one hand, this includes checks and balances that enable the Board of Directors to have appropriate control and oversight responsibilities. On the other hand, management incentives have to be set in such way that management teams interests are aligned with those of shareholders. RobecoSAM believes the changes in this criterion better balance board structure and management incentive related topics. The revamp of RobecoSAM s Risk & Crisis Management criterion seeks to align the Risk & Crisis Management methodology across all industries with a focus on Risk Governance, the identification of Emerging Risks, and the Risk Culture within the organization. Customer Relationship Management Environmental Policy/ Management System Similar to the changes in Risk & Crisis Management, RobecoSAM has adjusted the Customer Relationship Management criterion for the 2015 Assessment to be better aligned between industries. Additionally, the criterion was updated to meet the increasing management of customers online. Companies are increasingly facing constraints related to natural resources globally and to the eco-system services provided by the regions in which they operate. A strong environmental policy and management system (EMS) is needed to ensure the company improves its environmental performance, reducing raw material consumption and preventing degradation of the environment through waste and accidents. With two new questions («Return on Environmental Investments» and «Environmental Violations»), RobecoSAM is shifting its focus in this criterion towards the measurement of performance of environmental management systems. 5

6 DJSI Selection Rules 1. Eligibility: Companies are only eligible for selection if their score is at least 40% of the highest score within the respective index universe. 2. Best-in-class selection*: Select 10% best companies per industry for World (20% for World Enlarged/regional indices, 30% for country indices, 10% for Emerging Markets). 3. Error margin: Select companies outside the best-in-class interval if they are within an absolute 0.3 score distance of the last company selected in the respective industry in step Buffer rule: Select existing components if they are within the top 15% of their industry for World (30% for World Enlarged/regional indices, 45% for country indices, 15% for Emerging Markets). * Industries may be merged to ensure that at least one company can be selected at the best-in-class level (provided it passes the eligibility criteria). Source: RobecoSAM 6

7 Assessment 2015 Industry Group Leaders (1) As of September 21, 2015 Automobiles & Components Volkswagen AG Germany Banks Westpac Banking Corp Australia Capital Goods CNH Industrial NV United Kingdom Commercial & Professional Services SGS SA Switzerland Consumer Durables & Apparel LG Electronics Inc Republic of Korea Consumer Services Sodexo France Diversified Financials UBS Group AG Switzerland Energy Thai Oil PCL Thailand Food & Staples Retailing METRO AG Germany Food, Beverage & Tobacco Unilever NV Netherlands Health Care Equipment & Services Abbott Laboratories United States Household & Personal Products Kao Corp Japan Source: RobecoSAM 7

8 Assessment 2015 Industry Group Leaders (2) As of September 21, 2015 Insurance Swiss Re AG Switzerland Materials Akzo Nobel NV Netherlands Media Telenet Group Holding NV Belgium Pharmaceuticals, Biotechnology & Life Sciences Roche Holding AG Switzerland Real Estate Stockland Australia Retailing Lotte Shopping Co Ltd Republic of Korea Semiconductors & Semiconductor Equipment Taiwan Semiconductor Manufacturing Co Ltd Taiwan Software & Services Fujitsu Ltd Japan Technology Hardware & Equipment Alcatel-Lucent France Transportation Air France-KLM France Telecommunications KT Corp Republic of Korea Utilities Gas Natural SDG SA Spain Source: RobecoSAM 8

9 Assessment 2015 DJSI Overview Index Number of Components Weighted by Free-float market cap Sustainability Score DJSI World 317 DJSI World Developed 284 DJSI World DJSI World ex US DJSI Asia Pacific 145 DJSI Asia Pacific DJSI Japan DJSI Emerging Markets 92 DJSI Europe 161 DJSI Eurozone 88 DJSI Europe DJSI Eurozone DJSI North America 145 DJSI United States 125 DJSI North America DJSI United States DJSI Australia 45 DJSI Korea 52 DJSI Korea DJSI World Enlarged 598 DJSI Nordic 35 As of 21 September

10 DJSI World Index Range As of September 21, 2015 DJSI World 317 Components DJSI World ex Tobacco 316 Components DJSI World ex Gambling 302 Components DJSI World ex Alcohol, Tobacco, Gambling, Armaments & Firearms DJSI World ex Alcohol, Tobacco, Gambling, Armaments & Firearms, Adult Entertainment DJSI World 80 DJSI World ex US Components 268 Components 80 Components 80 Components Source: RobecoSAM 10

11 DJSI World Largest Additions & Deletions Largest 10 Additions (Ranked by Float Adjusted Market Capitalization as per 31 July 2015) Largest 10 Deletions (Ranked by Float Adjusted Market Capitalization as per 31 July 2015) Name Country Industry Group Bank of America Corp United States Banks Telefonica SA Spain BHP Billiton Ltd Australia Materials Deutsche Telekom AG Germany Societe Generale SA France Banks BHP Billiton PLC United Kingdom Materials Telecommunication Services Telecommunication Services Mitsubishi Corp Japan Capital Goods Vinci SA France Capital Goods GDF Suez France Utilities Nomura Holdings Inc Japan Diversified Financials Name Country Industry Group Cisco Systems Inc* PepsiCo Inc United States United States Royal Bank of Canada* Canada Diageo PLC* United Kingdom Technology Hardware & Equipment Food, Beverage & Tobacco Banks Food, Beverage & Tobacco ABB Ltd Switzerland Capital Goods Canadian Imperial Bank of Commerce/Canada* Canada Banks Air Products & United States Materials Chemicals Inc* Waste Management Commercial & United States Inc* Professional Services Household & Personal Henkel AG & Co KGaA Germany Products Experian PLC* United Kingdom Commercial & Professional Services * This company remains a Member of DJSI regional index (DJSI Europe, DJSI North America, DJSI Asia Pacific and/or DJSI Emerging Markets) Source: RobecoSAM 11

12 DJSI World Selection DJSI World 2,500 largest companies of the S&P Global Broad Market Index 59 RobecoSAM Industries 47 Countries Selection of top 10% in terms of Sustainability in each industry 15% target Buffer Selection in each Industry 317 Components 59 RobecoSAM Industries 26 Countries Review 2015: 34 ADD / 30 DEL Effective as of September 21,

13 DJSI Europe Index Range As of September 21, 2015 Dow Jones Sustainability Europe Index (DJSI Europe) 161 Components DJSI Europe ex Alcohol, Tobacco, Gambling, Armaments & Firearms DJSI Europe ex Alcohol, Tobacco, Gambling, Armaments & Firearms, Adult Entertainment DJSI Europe Components 131 Components 40 Components Dow Jones Sustainability Eurozone Index (DJSI Eurozone) DJSI Eurozone ex Alcohol, Tobacco, Gambling, Armaments & Firearms DJSI Eurozone ex Alcohol, Tobacco, Gambling, Armaments & Firearms, Adult Entertainment DJSI Eurozone Components 74 Components 71 Components 40 Components Source: RobecoSAM 13

14 DJSI Europe Largest Additions & Deletions Largest 5 Additions (Ranked by Float Adjusted Market Capitalization as per 31 July 2015) Largest 5 Deletions (Ranked by Float Adjusted Market Capitalization as per 31 July 2015) Name Country Industry Group Sanofi France BNP Paribas SA France Banks Deutsche Telekom AG Germany Societe Generale SA France Banks Pharmaceuticals, Biotechnology & Life Sciences Telecommunication Services Name Country Industry Group Total SA * France Energy Novo Nordisk A/S * Denmark Pharmaceuticals, Biotechnology & Life Sciences Siemens AG* Germany Capital Goods ABB Ltd Switzerland Capital Goods BHP Billiton PLC United Kingdom Materials UniCredit SpA* Italy Banks * This company remains a Member of DJSI World Source: RobecoSAM 14

15 DJSI Europe Selection DJSI Europe 600 largest European* companies of the S&P Global Broad Market Index 57 RobecoSAM Industries 16 Countries Selection of top 20% in terms of Sustainability in each industry 30% target Buffer Selection in each Industry 161 Components 51 RobecoSAM Industries 13 Countries Review 2015: 26 ADD / 18 DEL * 600 largest Austrian, Belgian, Dutch, Danish, Finnish, French, German, Irish, Italian, Luxembourg, Norwegian, Portuguese, Spanish, Swedish, Swiss, and UK companies Effective as of September 21,

16 DJSI Asia Pacific Index Range As of September 21, 2015 DJSI Asia Pacific DJSI Asia Pacific ex Alcohol, Tobacco, Gambling, Armaments & Firearms DJSI Asia Pacific Components 129 Components 40 Components DJSI Japan Components Source: RobecoSAM 16

17 DJSI Asia Pacific Largest Additions & Deletions Largest 5 Additions (Ranked by Float Adjusted Market Capitalization as per 31 July 2015) Largest 5 Deletions (Ranked by Float Adjusted Market Capitalization as per 31 July 2015) Name Country Industry Group Honda Motor Co Ltd Mizuho Financial Group Inc Wesfarmers Ltd Terumo Corp Japan Japan Australia Japan Automobiles & Components Banks Food & Staples Retailing Health Care Equipment & Services Asciano Ltd Australia Transportation Name Country Industry Group Sumitomo Mitsui Financial Group Inc Sony Corp Telstra Corp Ltd Japan Japan Australia Banks Consumer Durables & Apparel Telecommunication Services Kubota Corp Japan Capital Goods Aeon Co Ltd Japan Food & Staples Retailing Source: RobecoSAM 17

18 DJSI Asia/Pacific Selection DJSI Asia Pacific 600 largest companies from Asia/Pacific* of the S&P Global Broad Market Index 56 RobecoSAM Industries 6 Countries Selection of top 20% in terms of Sustainability in each industry 30% target Buffer Selection in each Industry 145 Components 46 RobecoSAM Industries 6 Countries Review 2015: 16 ADD / 17 DEL * 600 largest companies from Australia, Hong Kong, Japan, New Zealand, Singapore and Republic of Korea Effective as of September 21,

19 DJSI North America Index Range As of September 21, 2015 DJSI North America 145 components DJSI North America ex Alcohol, Tobacco, Gambling, Armaments & Firearms 127 Components DJSI North America Components DJSI United States 125 Components DJSI United States ex Alcohol, Tobacco, Gambling, Armaments & Firearms DJSI United States Components 40 Components Source: RobecoSAM 19

20 DJSI North America Largest Additions & Deletions Largest 5 Additions (Ranked by Float Adjusted Market Capitalization as per 31 July 2015) Largest 5 Deletions (Ranked by Float Adjusted Market Capitalization as per 31 July 2015) Name Country Industry Group Procter & Gamble Co United States Bristol-Myers Squibb Co United States Goldman Sachs Group Inc General Motors Co United States United States Household & Personal Products Pharmaceuticals, Biotechnology & Life Sciences Diversified Financials Automobiles & Components Ecolab Inc United States Materials Name Country Industry Group PepsiCo Inc United States Schlumberger Ltd United States Energy United Technologies Corp United States Bank of Nova Scotia Canada Banks Ford Motor Co United States Food, Beverage & Tobacco Capital Goods Automobiles & Components Source: RobecoSAM 20

21 DJSI North America Selection DJSI North America 600 largest North American companies of the S&P Global Broad Market Index 58 RobecoSAM Industries 2 Countries Selection of top 20% in terms of Sustainability in each industry 30% target Buffer Selection in each Industry 145 Components 51 RobecoSAM Industries 2 Countries Review 2015: 14 ADD / 19 DEL * 600 largest companies from Canada and the United States Effective as of September 21,

22 DJSI Emerging Markets Index Range As of September 21, 2015 DJSI Emerging Markets 92 Components Source: RobecoSAM 22

23 DJSI Emerging Markets Largest Additions & Deletions Largest 5 Additions (Ranked by Float Adjusted Market Capitalization as per 31 July 2015) Largest 5 Deletions (Ranked by Float Adjusted Market Capitalization as per 31 July 2015) Name Country Industry Group Cathay Financial Holding Taiwan Co Ltd Advanced Info Service Thailand PCL Turkiye Garanti Bankasi Turkey AS Insurance Telecommunication Services Banks SACI Falabella Chile Retailing Tech Mahindra Ltd India Software & Services Name Country Industry Group ITC Ltd India Malayan Banking Bhd Malaysia Banks China State Construction International Holdings Ltd China Food, Beverage & Tobacco Capital Goods Imperial Holdings Ltd South Africa Retailing Cia de Saneamento Basico do Estado de Sao Paulo Brazil Utilities Source: RobecoSAM 23

24 DJSI Emerging Markets Selection DJSI Emerging Markets 800 largest Emerging Markets* companies of the S&P Global Broad Market Index 56 RobecoSAM Industries 23 Countries Selection of top 10% in terms of Sustainability in each industry 15% target Buffer Selection in each Industry 92 Components 37 RobecoSAM Industries 14 Countries Review 2015: 13 ADD / 7 DEL * Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Malaysia, Mexico, Morocco, Peru, the Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey, and the United Arab Emirates Effective as of September 21,

25 DJSI Korea Index Range As of September 21, 2015 DJSI Korea 52 Components DJSI Korea Components Source: RobecoSAM 25

26 DJSI Korea Selection DJSI Korea 200 largest Korean companies of the S&P Global Broad Market Index 45 RobecoSAM Industries Selection of top 30% in terms of Sustainability in each industry 45% target Buffer Selection in each Industry 52 Components 30 RobecoSAM Industries Review 2015: 6 ADD / 7 DEL Effective as of September 21,

27 DJSI Australia Index Range As of September 21, 2015 DJSI Australia 45 Components Source: RobecoSAM 27

28 DJSI Australia Selection DJSI Australia 200 listed companies of the S&P/ASX RobecoSAM Industries Selection of top 30% in terms of Sustainability in each industry 45% target Buffer Selection in each Industry 45 Components 24 RobecoSAM Industries Review 2015: 5 ADD / 5 DEL Effective as of September 21,

29 Additional Resources Information for companies on the Corporate Sustainability Assessment (CSA): Further information about the 2015 DJSI Review: RobecoSAM CSA Methodology & Score Changes Assurance Statement 29

30 RobecoSAM Indices RobecoSAM USA, Inc. 909 Third Avenue New York, NY Phone: RobecoSAM AG Josefstrasse Zurich Switzerland Phone: Fax:

31 Index Definitions Index returns are provided for comparison purposes only to show market returns as measured by a broad-based index of securities. The indices are not actively managed and do not have costs, fees, or other expenses associated with their performance. It is not possible to invest directly in an index. 31

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