What is a Sustainability Index?

This week’s #STOTW

There are many different types of sustainable indexes. Many are used to determine how sustainable a company’s performance is, and then this is compared to other companies around the world.

 

For example, there is the Dow Jones Sustainability World Index (http://www.sustainability-indices.com/index-family-overview/djsi-family-overview/). First launched in 1999, it was the first measurement of sustainability for companies, and uses the RobecoSAM Corporate Sustainability Assessment (CSA) (http://www.robecosam.com/images/Measuring_Intangibles_CSA_methodology.pdf) to evaluate all companies’ sustainability practices. In order for a business to remain on this index, they must continue to improve their sustainable practices year to year.

 

A similar index is the AIChE Sustainbility Index (http://www.aiche.org/ifs/resources/sustainability-index).  Created to give users the ability to assess the level of sustainability of one’s company, and how their efforts to be sustainable are perceived by the public. The index uses 7 factors, which can be looked at in greater detail on their website.

 

Another example is the Environmental Sustainability Index (ESI) (http://sedac.ciesin.columbia.edu/data/set/esi-environmental-sustainability-index-2005)

#URSustainable

 

 

Written by: Teddi Shapiro, Class of 2019

 

3 Replies to “What is a Sustainability Index?”

Comments are closed.