Company Background
S&P Dow Jones Indices (S&P DJI) is home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average® and is the largest global resource for essential index-based market concepts, data, and research.
S&P DJI has been a pioneer in sustainability indexing for more than 20 years, starting with the 1999 launch of the Dow Jones Sustainability World Index. Today, S&P DJI offers an extensive range of indices and index-based solutions to address varying performance and sustainability objectives. These include broad-based, market-capitalization sustainability indices such as the S&P 500 ESG Index, as well as more thematic and targeted climate-focused indices.
- What is S&P DJI changing? As previously announced on Jan. 23, 2024, S&P DJI is implementing changes to two datasets that are used to screen and identify eligible companies for potential inclusion to its range of sustainability/ESG indices.
S&P DJI is transitioning all indices that are currently using S&P DJI ESG Scores to S&P Global ESG Scores. In addition, S&P DJI will also transition the Business Involvement Screens data source from Sustainalytics’ Product Involvement Screens to S&P Global’s Business Involvement Screens for many of its indices.
Both the S&P Global Business Involvement Screens and S&P Global ESG Scores are published by S&P Global Sustainable1 (S1), which operates independently from S&P DJI.
For the S&P Global ESG Score transition, there will be no change to how the score is used across the impacted indices. The S&P Global ESG Score measures a company’s performance on and management of material ESG risks, opportunities and impacts informed by a combination of company disclosures, Media and Stakeholder Analysis (MSA), modeling approaches and in-depth company engagement via the S&P Global Corporate Sustainability Assessment (CSA). For more information on the S&P Global ESG Score, please refer to the S&P Global ESG Scores Methodology.
For the Business Involvement Screens transition, existing screens will be replaced by the direct equivalent in the new data set and no modifications will be made to the existing levels of involvement described in the relevant index methodology. Sustainalytics’ Global Standards Screening dataset will continue be used where relevant.
2. How were these decisions made? The changes are being implemented following feedback gathered from a market consultation that S&P DJI conducted in 2023. As part of its index governance process, S&P DJI periodically conducts market consultations to help inform customers, index users and market participants of proposed index methodology changes and ensure that its indices and benchmarks continue to remain timely and relevant and reflect appropriate global financial market trends, including those related to the evolving sustainability landscape.
In early December 2023, S&P DJI conducted a market consultation outlining the two proposed changes to gather comments and feedback from key customers, index users and market participants. S&P DJI also extended the consultation period in early January 2024. Following a review of the consultation results, S&P DJI then announced its decision on Jan. 23, 2024.
S&P DJI reviews its methodologies and data sources on an ongoing basis to ensure that its indices use the most appropriate datasets that are available to help the indices better meet their objectives and its clients make better informed decisions.
