Dow Jones Sustainability Index (DJSI)

Overview

The DJSI evaluates companies using the Corporate Sustainability Assessment (CSA), a rigorous methodology that measures sustainability performance across three dimensions—economic, environmental, and social (i.e., ESG). Approximately 3,400 companies from the DJI universe are assessed annually.

Each year, RobecoSAM selects the top 10% of companies in each of the 62 sectors based on their sustainability scores to form the index constituents. The index is updated every September following a comprehensive reassessment. In addition to maintaining the DJSI indices, RobecoSAM also publishes The Sustainability Yearbook, a global compendium of top-performing sustainable companies. Deloitte serves as an assurance provider for the evaluation process.

DJSI selection process and criteria

1. Invitation phase

Companies must rank in the top 45% within their industry to be eligible for inclusion.

2. Best-in-class selection

For the DJSI World Index, companies in the top 10% by score within each industry are selected. The thresholds for other indices are:

• 20% for regional indices

• 30% for country-specific indices

• 10% for emerging markets

3. Margin of tolerance

Companies just outside the top 10% may still qualify if their absolute score is within 0.6 points of the last company included in the top 10%.

4. Buffer rule

Existing constituents will be retained if they remain in the top 15% for the DJSI World (30% for regional and 15% for emerging market indices).

DJSI index categories

The DJSI family comprises several regional and national indices:

• DJSI World

• DJSI Europe

• DJSI North America

• DJSI Asia Pacific

• DJSI Emerging Markets

• DJSI Korea

• DJSI Australia

• DJSI Chile

• DJSI MILA (Latin America)

DJSI evaluation scope

As of 2023, over 3,500 companies participated in the CSA process. The following charts illustrate:

Figure 1. Country/region-wise distribution of participating companies

Figure 2. Industry distribution of the top 20 sectors participating in the assessment

(Source for both figures: S&P Global CSA)

Scoring system and assessment topics

Companies are scored using the following formula:

Company Score = (Question Score × Indicator Weight × Question Weight)

The DJSI questionnaire contains over 100 questions, categorized under three main ESG pillars:

• Economic

• Environmental

• Social

Each industry receives a tailored version of the assessment to reflect sector-specific risks and material issues.

Core values of DJSI

DJSI promotes corporate sustainability by emphasizing four key principles:

1. Relevance and adaptability
   The questionnaire is updated annually to align with emerging sustainability trends and external risks.

2. Operational effectiveness
   Companies must provide documented evidence of sustainability practices to demonstrate sound internal governance systems.

3. Continuous improvement
   Companies are expected to set ambitious sustainability targets and show progress against key performance indicators (KPIs).

4. Transparency and accountability
   ESG performance must be verified by third-party auditors and publicly disclosed to ensure credibility and comparability.

Source

1. S&P Global 

2. JYG 

3. The News Lens