Local firms added to DJSI
The MTR Corporation and Kowloon Motor Bus are to be added to the Dow Jones Sustainability Indices (DJSI), which include more than 300 companies from 23 countries that lead their industries in terms of sustainability.
The two Hong Kong companies join Li & Fung and Swire Pacific (A) in the index series and will be included from September 23, while New World Development drops out.
The annual review influences the investment decisions of 40 asset managers who use the DJSI family as objective benchmarks for sustainability portfolios. They manage close to two billion euros in funds, certificates and segregated accounts based on these benchmarks, Dow Jones said.
The DJSI World Index was launched in 1999. Dow Jones uses a 'best in class' approach, evaluating companies according to a defined set of criteria and weightings that assess the opportunities and risks derived from economic, environmental and social developments.
Sustainability assessments are performed in conjunction with SAM Research, and look at company and third-party documents as well as personal contacts between the analysts and companies.
''People realise that sustainability trends have an important impact on the companies they invest in,' said John Prestbo, editor of the Dow Jones indices.
'Moreover, recent corporate scandals have emphasised the need for greater transparency and accountability. As a result, an increasing number of investors are turning to the concept of sustainability to identify well-managed and future-oriented companies.'
Hutchison Whampoa and Hang Seng Bank are the two Hong Kong firms included in the FTSE4Good index series, which screens according to socially responsible investment standards, avoiding sectors such as tobacco, weapons and nuclear power.
'These companies represent the early movers in Hong Kong and, indeed, the region,' said James Muir, senior consultant at Environmental Resources Management. He said the newly listed MTRC was the only local company which voluntarily produced a sustainability report.
