More companies added to 2006 Dow Jones Sustainability Indexes
The 2006 Dow Jones World Sustainability Index (DJSI-World) has shown a net gain of ten companies, with 46 firms added and 36 deleted, including one Canadian company in each column. EnCana is the latest addition, in the oil and gas sector, with Enbridge (in the utilities sector) deleted as of September 18, 2006.
The annual survey reviews the world's 2,500 largest companies, listing the top 10% based on their environmental, economic and social performance. The review assesses a full range of corporate practices including governance, risk management, branding, climate change, supply chain standards, and labour practices.
AMEC has been named the industry leader in the DJSI-World's support services sector. This is the third straight year that the U.K.-based, international project management and engineering services company has been named as a sector leader in the Index. Of the 65 global support service companies, only 11 met the criteria for inclusion in the DJSI-World. AMEC has operations in over 40 countries, including a network of offices across Canada.
The Index also lists Canada's five major banks among the 27 banks worldwide ranked as DJSI-World sustainability leaders. For the Canadian Imperial Bank of Commerce (CIBC), this is its fifth consecutive year as a component of the Index. Also meeting the DJSI-World criteria are the Bank of Montreal (BMO), the Bank of Nova Scotia (Scotiabank), the Royal Bank of Canada (RBC) and the Toronto-Dominion bank (TD Canada Trust).
These banks make up one-quarter of the total Canadian companies included in the DJSI for North America. Three other Canadian companies have been added to this year's North American Index as well: Sun Life Financial, Talisman Energy and TransAlta. EnCana is also listed, supplementing its inclusion in the DJSI-World. The remaining Canadian companies on the DJSI North America are Alcan, BCE, George Weston, Inco, Manulife Financial, Nexen, Nortel Networks, Shell Canada, Suncor Energy, Telus and TransCanada.
An analysis of this year's assessment and its results yielded a number of insights from SAM Group, the Zurich financial services company that has been conducting the survey, in partnership with Dow Jones Indexes, since 1999.
*The trend toward industry-specific sustainability management continues, as companies become increasingly knowledgeable about the sustainability risks and opportunities within their individual sectors. Examples include waste-to-energy production by utility companies and closed-cycle bleaching in the pulp and paper industry.
*Competition for leadership in sustainability among companies is growing in direct proportion to its recognition. More and more companies are competing for sector sustainability leadership and differences between leading companies in most sectors are getting smaller.
*Climate change continues to command increasing attention, as more companies realize that it will have a major impact on their operations and products. Leading energy firms are including climate change impact assessments in their due diligence procedures, while top financial institutions leverage their climate change knowledge - gained during internal assessments - to develop and offer new products and services going beyond carbon emission trading, such as risk management systems and environmental impact assessments of potential investments.
*At the same time, however, there remain huge discrepancies between companies with regard to their operational risk management. Only a few companies report having established tools and systems for visualizing and quantifying operational risks, such as risk maps, stress testing, sensitivity analysis, etc.
Overall, concludes the SAM analysis, sustainability performance continues to advance across all sectors. Nevertheless, there is still substantial room for progress.
More information is available on-line at www.sustainability-indexes.com.