- Who is S&P Dow Jones Indices? S&P Dow Jones Indices (S&P DJI) is home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average®. The largest global resource for essential index-based market concepts, data, and research, it is a major investor resource to measure and trade the markets.
S&P Dow Jones Indices has been a pioneer in environmental, social, and governance (ESG) indexing for 20 years, starting with the 1999 launch of the Dow Jones Sustainability World Index. Today, we offer an extensive range of indices to fit varying risk/return and ESG expectations, from core ESG and low-carbon climate approaches, to thematic and fixed income ESG strategies.
- Who is SAM? SAM was founded in 1995 and has been a partner of S&P Dow Jones Indices since 1999, when they worked together to launch the Dow Jones Sustainable Index (DJSI) Series. SAM provides ESG Research and Benchmarking and conducts the annual SAM Corporate Sustainability Assessment (CSA). SAM was formerly a part of asset manager RobecoSAM. In January 2020, it became a part of S&P Global.
S&P/B3 BRAZIL ESG INDEX
- What is the S&P/B3 Brazil ESG Index? The S&P/B3 Brazil ESG Index is an S&P DJI ESG Score-weighted, broad-based index that seeks to measure the performance of stocks meeting sustainability criteria. The index applies exclusions based on business activities and United Nations Global Compact (UNGC) scores. ESG stands for environmental, social, and governance.
- What are the S&P DJI ESG Scores? S&P DJI ESG Scores are environmental, social, and governance scores that robustly measure ESG risk and performance factors for corporations, with a focus on financial materiality. The S&P DJI ESG Scores are used in the constituent weighting process in the S&P/B3 Brazil ESG Index. They are a second set of ESG scores calculated by SAM, in addition to the S&P Global ESG Scores (formerly known as SAM ESG Scores) that are used to define the Dow Jones Sustainability Indices constituents.
The S&P DJI ESG Scores are the result of further scoring methodology refinements to the S&P Global ESG Scores. These are based on SAM’s annual Corporate Sustainability Assessment (CSA), a bottom-up research process that aggregates underlying company ESG data to score levels. The scores contain a total company-level ESG score for a financial year, comprising individual environmental (E), social (S), and governance (G) dimension scores, beneath which there are on average 21 industry-specific criteria scores that can be used as specific ESG signals (see Exhibit 1).
A company’s total ESG score is the weighted average of all criteria scores and their respective weights. Each individual ESG dimension score (e.g., a company’s “E” score) is the weighted average of all criteria scores and weights within a specific ESG dimension. Total ESG scores range from 0-100, with 100 representing the best performance.
For more information on the S&P DJI ESG Scores, please see the S&P DJI ESG Scores Frequently Asked Questions.
- How are the S&P DJI ESG Scores used in this index? S&P DJI ESG Scores are used in the weighting of the S&P/B3 Brazil ESG Index. Companies in the eligible universe (see question 3 in the Methodology section) are weighted by S&P DJI ESG Score, subject to weighting caps and liquidity constraints (see question 6 in the Methodology section).
- Can this index be customized? Yes. This index is an example of how the S&P DJI ESG Scores can be used in an index strategy. For further information on the scores or options for customizations, please contact your S&P DJI account representative, or visit https://www.spglobal.com/spdji/en/contact-us/.
- How does the index perform relative to its benchmark, the S&P Brazil BMI? Index performance statistics are presented for all S&P DJI indices on their index factsheets, found via https://www.spglobal.com/spdji/. The index factsheet for the S&P/B3 Brazil ESG Index can be accessed at https://www.spglobal.com/spdji/en/indices/equity/sp-b3-brazil-esg-index/.