South Korea’s KT Corp. and Samsung Electronics have top their respective ‘Supersectors’ in the latest Dow Jones Sustainability Index.
The annual ranking of publicly-listed companies based on their investment return and sustainable performance combines evaluations from the Dow Jones Global Total Stock Market and corporate sustainability assessment conducted by sustainability investing firm, SAM.
In addition to laying out the leaders in corporate sustainability, SAM also identifies the leaders of 19 “Supersectors,’ which represents a higher level categorisation of the 57 standard sectors identified by the Index.
KT Corp. was named the 2011 leader for the Telecommunications Supersector, which includes the sectors, mobile telecoms and fixed line telecoms.
“The company’s outperformance in the environmental dimension derives from its comprehensive strategy to address the implications of climate change and its well-developed environmental resource management,” a DJSI profile of the company noted. “KT Corp. has shown a well-defined brand strategy in the economic dimension by comprehensively incorporating its stakeholders’ brand perception in the management process. Moreover, it has enhanced its efficiency regarding capital expenditure and has achieved repeated excellent performance in risk and crisis management and privacy protection. KT Corp. recognizes the value of its human capital through an advanced management system. The company takes responsibility for the social impacts of telecommunication services and proactively engages with stakeholders regarding issues of their concern.”
Fellow Korean firm, Samsung Electronics was named the leader in the Technology Supersector, which includes the software, computer services & Internet, communication technology, semiconductors, computer hardware & electronic office equipment.
“Samsung Electronics’ policy to put sustainability at the heart of all its operations earned it the position of technology industry’s sustainability leader for the year 2011. Sustainable innovation is promoted across all business units by using an eco-design process and an Eco Rating System,” according to SAM Research. “The company has formed Councils focusing on initiatives such as eco-products development, reduction in greenhouse gas emissions, water quality control and waste management. Product resource efficiency is promoted through global take-back and recycling programs. Samsung strives to keep a responsible supply chain and has an Eco Partner Certification Scheme. It evaluates suppliers’ environmental management systems and also checks for the use of restricted hazardous substances in parts and raw materials. In 2011, the company announced the “Samsung Eco-Management Vision 2020”, which includes an investment plan of KRW 23 trillion in green businesses including solar cells, rechargeable batteries for vehicles, smart grids, and geothermal heating/cooling units by the year 2020.”
HP out, Schneider Electric in
The latest review of the DJSI was released this month and saw 41 new companies added to, and 23 firms deleted from, the Index.
New additions in the tech sector include energy management and systems company, Schneider Electric. On the other side of the coin, tech-giant HP will be deleted from the Index. DJSI did not explain why HP will be removed from the list.
“In spite of the current economic turmoil, it’s clear that sustainability remains a high priority on corporate and investor agendas,” said Michael Baldinger, CEO at SAM. “Through the DJSI, we are pleased to provide access to a benchmark that offers investors exposure to sustainability leaders in each sector around the world, while also enabling them to create innovative passive and structured products.”