So during the past week or so, there seems to be lots of news flow around sustainability indexes. With such, I decided to take a quick look through to see if there was anything that was particularly important or relevant to Canadian investors or corporations. There are couple of things that I’d simply like to note:
- The questionnaires for the Dow Jones Sustainability Index are now available for corporations to complete. Deadline for completion is June 2 and we can expect the results to be announced on September 8. Given there are currently 27 Canadian companies in the index, it’ll be interesting to see how they engage the process and who gets added and deleted in September.
- The FTSE4Good Index Series has provided an mid-year update affective March 18. To my surprise, there is not even one Canadian company on their list. To great surprise, they had 19 additions to their list — 8 from Israel and 11 from South Korea.
- Last week we had news of a new Global ESG index being launch by STOXX. They have teamed up with Sustainalytics to provide both a European and Global ESG index. In addition they will also break the index down in to Global Environmental Leaders, Global Social Leaders, and Global Governance Leaders. The inclusion in the index will be based on what they call “KPI’s for ESG 3.0”. It all sounds intersting, although at this point I was not able to get access to who actually is in the index. The symbol is SXWESGP for those who are interested in learning more.
Ultimately, the key is that investors increasingly have choices being made available to them with respect to where and how they can invest according to ESG themes. The market is moving and opportunities abound. I’m not sure we’ve yet reached Malcolm Gladwell’s “Tipping Point”, but we’re certainly moving close and closer all the time.