Monday, 1 October 2012

Do CSR ratings and good companies rankings matter?


Last month has been a big one for corporate sustainability rankings, with the Dow Jones Sustainability Index (DJSI) and the Carbon Disclosure Project releasing new reports. Also a  book called Good Company announced its own 2012 Good Company Index. And this month will bring the World Series, Halloween and, of course, the annual Newsweek “green” rankings of big public companies, etc. Read in detail in Marc Gunther’s blog. As  he suggests all these rankings rise a lot of questions. And some findings are rather discouraging . Take for example the  Dow Jones Sustainability Index (DJSI).
The DJSI World has, since its inception in 1999, very closely tracked the stock markets as a whole. Actually, it slightly trails the MSCI World Index.
That’s discouraging, says Gunther. If the index is, in fact, selecting the most sustainable companies, they ought to be rewarded by forward-thinking investors. They’re not. Here’s a chart.

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