Sustainability indices are financial tools developed to evaluate the environmental, social and governance (ESG) performance of companies and present this information to investors and other stakeholders. Here is more information and details about sustainability indices:

What are Sustainability Indices?

Sustainability indices are indicators that measure a company's sustainability practices and performance. These indices typically include the following elements:

  1. Environmental Performance: Focuses on environmental impacts such as carbon emissions, water usage, and waste management.
  2. Social Performance: Evaluates social dimensions such as worker rights, social contribution, and customer satisfaction.
  3. Governance: Examines governance practices such as corporate governance, ethics, and transparency.

Major Sustainability Indices

  • Dow Jones Sustainability Index (DJSI): It is one of the most widely known sustainability indices in the world. It evaluates the sustainability performance of companies and identifies the best performers.
  • FTSE4Good Index: It is an index that includes companies that meet sustainability standards. It evaluates companies according to environmental and social responsibility criteria.
  • MSCI Sustainability Index: It is another important index that measures the environmental, social and governance performance of companies.

Benefits of Sustainability Indices

  • Providing Information for Investors: Investors can learn which companies are environmentally and socially sensitive through sustainability indices.
  • Competitive Advantage: Companies included in sustainability indices gain greater recognition in their markets thanks to their commitment to sustainability.
  • Company Improvements: Companies strive to improve their sustainability practices in order to perform better in these indices.
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