The Global Interest in DJSI and ESG Investment Is Growing
The Dow Jones Sustainability Indices (DJSI) are among the highest standards for corporate sustainability. Launched in 1999 and operating under a strategic partnership between S&P Dow Jones Indices and RobecoSAM (Sustainable Asset Management), the index family evaluates the sustainability performance of thousands of companies trading publicly. The indices are the longest-running sustainability benchmarks in the world and have become a key reference point in sustainability investment for investors and companies alike.
The DJSI is based on an analysis of corporate economic, environmental and social performance, assessing issues such as corporate governance, risk management, branding, climate change mitigation, supply chain standards and labour practices. It includes general as well as industry-specific sustainability criteria to select the most sustainable companies across 61 industries.
This year, over 3,500 of the world’s largest companies in both developed and emerging markets were invited to take part in SAM’s Corporate Sustainability Assessment, in which financial, environmental, social and governance (ESG) factors are assessed. Only leading companies that are best equipped to recognise and respond to emerging opportunities and risks arising from global sustainability trends are selected for inclusion in the DJSI.
In 2020, the number of participating companies increased by an astonishing 19% compared to 2019.
According to Morningstar, ESG investments achieved record inflows in the second quarter of 2020, reaching a new high of $1T in total assets under management in funds that comply with the ESG principles.
Increasing participation in DJSI and the rapid growth of ESG investments may not come as a surprise: ESG funds are proving to be more crisis proof compared to their traditional peers. Through in September 2020, the S&P 500 ESG Index outperformed the S&P 500 by 2.5%. Over the years, there has been a growing body of research indicating this resilience.
ARÇELIK BECOMES THE INDUSTRY LEADER FOR THE SECOND CONSECUTIVE YEAR IN DJSI
Arçelik is the only Turkish, industrial company to be listed in the DJSI in the Emerging Markets Category for four consecutive years. Arçelik also achieved the accolade of being named “Industry Leader” in the Household Durables category for two years in a row, based on its total sustainability score in 2020.
The household durables industry includes home electronics, home furnishings, and household appliances. The industry is characterised by:
Continuously evolving consumer preferences for customised products
Advances in technology (e.g., The Internet of Things) and automation
Increasing demand for eco-friendly products and smart homes
The highest-scoring leaders, such as Arçelik, proactively integrate sustainability into their business models by focusing on product stewardship, operational eco-efficiency, responsible sourcing, enhanced transparency, and product labelling, as well as end-of-life solutions for customers.
Arçelik’s assessment results in Governance & Economic, Environmental and Social dimensions can be examined (on the left) against industry average scores and the best industry scores. Arçelik has received the highest scores in two dimensions, as well as the highest overall score.
To be recognised once again by DJSI as the Industry Leader provides validation that our efforts in every aspect of sustainability, including climate change mitigation, transparency, supply chain, risk management, human rights and ethics, generate real value and impact.
Our global operations were carbon-neutral in 2019 and 2020 as a result of our own VCS carbon credits generated through the Energy Efficient Refrigerators Carbon Financing Project, implemented in Turkey.
We have achieved excellent progress that has set an example for industrial companies, especially in our own industry.
To continue to help protect the future of our planet, the plan is to invest an additional $50 million in renewable energy and energy efficiency in the coming years.
Arçelik is also Turkey’s first and only industrial company which owns two WEEE (Waste Electrical and Electronic Equipment) Recycling Facilities. We saved 315 GWh of energy and 6.4 million tons of water by replacing old, high energy and water consuming products with energy and water efficient products, regardless of the brand from 2014.
Arçelik’s success is also acknowledged by other indices and frameworks:
Rated AAA on the Morgan Stanley Capital International (MSCI) Sustainability Index since 2015
Rated as “Prime” by ISS ESG Ratings in September 2020 period
Listed in the FTSE4Good Emerging Markets Index at the London Stock Exchange since 2016
Being one of the supporters of the Task Force on Climate-related Financial Disclosures (TCFD), Arçelik’s ambition is to further develop our business towards a low carbon future, ensure resilience and adapt to fight against climate-related risks. We are committed to enhancing our reporting capabilities through increased visibility and transparency. We will also contribute to forward-looking ESG performance management through TCFD recommendations that serve as a crucial tool to support implementing concrete measures to help combat climate crisis.