Celebrating the 10th Anniversary of the Dow Jones Sustainability Indexes

Events to Watch: IASP Conference in Daejon, South Korea

Representing research parks that contain 200,000 companies worldwide, the International Association of Science Parks is set to hold their global conference May 23 in South Korea. The focus? Green Global Growth, or "G3" for short. G3 means "economic growth built upon a positive response to environmental issues and a partnership for growth founded in global cooperation," notes Chung Un-Chan, the honorary chairman of IASP 2010. "Taking the global consensus that has emerged about the need for green growth, we can develop green technologies, commercialize them and create new industries based upon those technologies. The great value of this process is that it will develop our economy while at the same time protecting and improving the earth's ecosystem."

The IASPs members "enhance the competitiveness of companies and entrepreneurs of their cities and regions, and contribute to global economic development through innovation, entrepreneurship, and the transfer of knowledge and technology."

Here's the conference program.

Take a Virtual Tour of Songdo, South Korea's Vision for a Sustainable City

120 LEED-certified buildings are expected to tower over the Songdo International Business District, South Korea's new sustainable city project, reports Current.com. Sinking more than $30 billion across 1,500 acres, the city is designed to be 40% "open, green space, park and golf course, and the city will be easily traveled by foot and mass transit." There are a dozen artist conception shots after the jump, and Songdo.com posted a video on YouTube giving a flyover tour of their sustainable city of the future.

Photo Set: Launch of Dow Jones Sustainability Index Korea & Korea 20

On October 20, Dow Jones Indexes, SAM and Korea Productivity Center (KPC) hosted a launch event and press conference at the COEX Intercontinental, Seoul for the DJSI Korea and DJSI Korea 20 indexes. The red-carpet launch event was attended by CEOs and other top management of each of the 41 index component companies. More than 20 journalists attended the press conference (see coverage here), which was also covered by several local TV stations. Speakers included Edoardo Gai, Head of Sustainability Services at SAM; John Prestbo, Editor and Executive Director of Dow Jones Indexes; Choi Dong-Kyu, Chairman and CEO of KPC and Lee Chun-Seon, Managing Director of KPC.

Check out the full photo set here.

South Korea Marks '350'

South Korea was one of the 150+ countries marking the "Day of Action" organized by 350.org on Saturday, October 24. The event was a  global call for the world's CO2 levels to be reduced to 350 parts per million. 350.org picked up this notable report from a youth leader associated with the UN Environmental Program's Tunza Network.

"I am currently in Seoul and I just got back from the 350 action at the Ddukseom market, where 60 youth leaders with the UN Environment Program's Tunza network have been connecting with the thousands of people at the market about 350 and why it is the most important number on earth. I met with high school students, who despite the fact that they study six days a week, until 10pm every day, are working hard in their almost nonexistent free time to make their schools more sustainable, develop renewable energy, and provide an example of leadership to other campuses. Inspired by Secretary General Ban Ki-moon, they were so excited to see people all across the world supporting a fair, binding, and ambitious global UN climate treaty." 

The conversation about 350 is still going strong on Twitter:

UN Finds South Korea Top of 'Green Recovery' List

Take a look at this interesting story from Renewable Energy Magazine. The United Nations Environmental Program (UNEP) issued a study that examines where countries rank in allocating their recession recovery funds towards green initiatives. South Korea has "79% of its total economic recovery spending earmarked for green initiatives." That compares to 34% for China and 21% for Australia. "France, Germany and the US finish off the top five, with each nation committing less than 20%."

In its press release, the UNEP states "Governments need to Seal the Deal at the crucial UN climate convention meeting in Copenhagen in December as one significant way of turning essentially national 'green new deals' into a global Green Economy phenomenon."

Here are two videos from the UNEP, a related report on the Green Economy, and information on a Korea-UNEP "Pledge Green Growth Partnership" that was announced in August.

Roundup of 'Green Growth' info from South Korea-ASEAN Summit

This past June, South Korea hosted the ASEAN (Association of Southeast Asian Nations) conference on Seogwipo, Jeju island in recognition of the country's 20th year as a member of the economic group.

Green growth was high on the organization's agenda, and President Lee presented his "Low Carbon, Green Growth" plans (see previous post). As reported in the Korea Times, Lee stated, "Twenty years have passed since Korea established diplomatic relations with ASEAN. Today's summit between entrepreneurs from Korea and ASEAN provides us with an important opportunity to chart out new plans for common growth...We need to increase cooperation in three areas ― investment and trade, culture and tourism and green growth ― to brace for the changing global economic paradigm.''

At the close of the summit, the attendees issued a joint statement proclaiming they agreed "to promote close cooperation by introducing environment-friendly technology and undertaking cooperative projects and studies to deal with climate change. We agreed to promote cooperation in exchange programs related to reducing green house gas emissions on the basis of training, education, and public awareness on climate change mitigation. We agreed to endeavor to strengthen our cooperation in the context of the United Nations Framework Convention on Climate Change (UNFCCC), especially on the Reducing Emissions from Deforestation and Forest Degradation in Developing Countries (REDD) initiative, enhancement of sustainable forest management, wasteland restoration, and promotion of industrial forestation."

Read the full summit statement here. Photo gallery is here.

South Korea: From Here 'til 2030

Cutting reliance on fossil fuels from 83% to 61%. Boosting nuclear power production from 36% to 59%. And growing global market share in renewable energy from 0.7% to 15%. These are just some of the goals that the South Korean government laid out in 2008 in its roadmap to the year 2030. According to the Japan Economic Foundation, the improvements are slated to save $34.4 billion in energy imports and create 950,000 jobs. Here's a link to the press release, and related coverage from EcoSeed, Korea Times and the Guardian.

You can also read the president's committee on green growth presentation here.

A Deep Look Inside the New Dow Jones Sustainability Korea Index

Top Five Holdings:

• Samsung Electronics: 10.27%
• KB Financial Group: 10.16%
• POSCO: 9.68%
• Shinhan Financial Group: 9.66%
• LG Electronics: 4.6%

Top Five Sectors:

• Financials: 23.2%
• Basic Materials: 17.2%
• Consumer Goods: 13.6%
• Industrials: 11.5%
• Technology: 8.7%
• Utilities: 8.7%

A list of all of the components, values and methodology for building the index can be found here.

Index Performance vs. Benchmark

Two Korean Sustainability Indexes Launch

Dow Jones Indexes, SAM and the Korea Productivity Center (KPC) launched two new sustainability indexes last night. The Dow Jones Sustainability Korea Index (DJSI Korea) tracks the stock performance of the top 30% (of the 200 biggest) companies in South Korea in terms of sustainability -- accounting for long-term economic, environmental and social criteria. The index currently includes 41 sustainability leaders. The second index, called the DJSI Korea 20, measures the performance of the 20 largest companies in the DJSI Korea. To celebrate the launches, we'll take the next two weeks to explore and discuss sustainability in South Korea. Video from the press conference and more info on the index are coming soon, so watch this space! Press release here, fact sheet on DJSI Korea here, Fact sheet on DJSI Korea 20 here.

Video: NYSE Panel on Trends in Corporate Social Responsibility

The New York Stock Exchange hosted a panel discussion yesterday on what the future holds for corporate social responsibility.  Our own John Prestbo took part, along with Bryan Boyd, VP of Worldwide Environmental, Health and Safety, Johnson & Johnson; Bennett Freeman, SVP for Sustainability Research and Policy, Calvert Investments; and Brian A. Rice, Investment Officer, CalSTRS.  You can watch the video here (registration required). 

Sandor: Air and Water to Become Commoditized

Keynote speaker Richard Sandor, Chairman of the Chicago Climate Exchange, addressed the progression of value creation post World War II. In the Sixties it was manufacturing; in the Seventies, oil; the Eighties, commoditization of various financial assets like derivatives, and in the Nineties, commoditization of information.   “In the 21^st century, [value creation] will be marked by the commoditization of air and water. That’s nothing more than sustainability, to preserve a planet, put a price on public goods and be sure they are rationed appropriately…. This is cap and trade,” said Sandor.

 

“I owe my life and dreams to sustainability,” he concluded.  “Climate change is is a critical issue and we must act urgently.” Sandor predicted that in the 21^st century, “Sustainability leadership will come from China and Asia. Look East. The knowledge, the interest, and the will to do something will surprise many of us…Do not underestimate their ability to grow.”  

Founders of Sustainability Indexes Look Back

To kick off the evening, the three companies behind the Dow Jones Sustainability Indexes welcomed the crowd of approximately 120 sustainability leaders.  

Sander van Eijkern, CEO of SAM, noted that, “We have come a long way and a great number of investors now share our idea that sustainability is part of the fiduciary responsibility when accounting for investment decisions. There is an increasing body of investment and scientific studies pointing out the relationship between sustainability and long term investment.”  

John Prestbo, Editor and Executive Director of Dow Jones Indexes, reflected to the audience that in the early days, “Sustainability was far more established in Europe than in the U.S. There were a few that were strong practitioners of sustainability, but not many. Eventually America became aware and starting noting things like the environment, social issues, and governance, and it’s no longer a foreign word. We’re pleased to shine the beacon forward.”   

Finally, Ricardo Manrique, CEO of STOXX Limited, closed the welcome by declaring that sustainability “is here to stay and will only to continue to grow – in spite of the last two years and maybe more so because of the financial crisis.”

There at the Beginning: David Moran of Dow Jones Indexes

What better way to celebrate the 10th anniversary celebration of the Dow Jones Sustainability Indexes than to get the perspective of David Moran, the first president of Dow Jones Indexes. Reflecting back on how far the Index has come, he shared, “As an index provider, we were always interested in looking at markets from a variety of prisms; one doesn’t just look at size, assets, or income, but a corporation’s intention to be a social actor. When we started the sustainability index, it was a small idea that turned out to have incredibly long legs that has created great traction around the world, and I am very proud to have been a part of it.”

For Author of "Climate Cover-Up" Interest in Environment Took Root at Age 10

Richard Littlemore, co-author of the book Climate Cover-Up: The Crusade to Deny Global Warming, said that his interest in sustainability was first stoked when he was a 10-year-old living in Kingston, Ontario. "You could stand at the side of Lake  Ontario and see the outline of a ship that was sunk on purpose during the war of 1812. When I was 16, you could stand in four feet of water in the exact same place and not see your own feet. The water just degraded just that quickly. That was when I realized that whatever we doing, it was not sustainable.”  As a professional journalist, a chance assignment as a freelancer for the David Suzuki Foundation, an influential environmental group, writing a public education package, convinced him that this was his calling. “As a freelancer, I needed the money and wasn’t trying to save the world…  and ever since then I haven’t been too far from the topic of sustainability.” 

Migo Terjanian of Sustainable Asset Management Looks to Next Decade

Quick chat with Richard Liroff, Investor Environmental Health Network

The DJSI event has brought together many of the pioneers of the sustainability  sector. For  Richard A. Liroff, Ph.D., founder of the Investor Environmental Health Network, his interest first took root while working at the World Wildlife Fund for 25 years. While there Richard worked on public policy issues like toxic chemicals and decided to engage companies on the size of their toxic footprint.  At his company “we’re trying to redefine how investors look at toxic chemical issues. They need to be concerned about increased regulations in Europe and the U.S. Companies like Wal-Mart, Toys ‘R’ Us recognize that the trust of their customers depends on it.”

Michael Lent of Veris Wealth Partners on Future of Sustainability

Carina Molnar of CUNY Sustainable Cities Blog Live-Blogging Tonight's Event

We're thrilled to have Carina Molnar, who blogs over at CUNY Institute for Sustainable Cities, liveblogging with us tonight. Watch for her interview with John Prestbo, Editor and Executive Director of Dow Jones Indexes, later this evening.

Carina has a BA in International Affairs with a focus in Sub Saharan Africa and Sustainable Development from the University of Colorado at Boulder. She is currently pursuing her MA in International Affairs with a focus on Cities and Urbanization at the New School University. Her research interests are ecological services and valuation—with a focus on urban forestry, and environmental justice for vulnerable populations. Since joining CISC, Carina has worked to develop the voice for the Institute by managing the blog and conducting various outreach activities, within the CUNY community and the larger New York City area.

And the Conversation Begins...

The celebration of the 10^th anniversary of the Dow Jones Sustainability Indexes has begun! As the crowd begins to mingle on the outdoor terrace of the Weston Pavilion at the Museum of Natural History, several attendees were happy to share their views about sustainability investment. One of the biggest misconceptions about it is that “many people consider the process as one of negative screening or they tend to focus just on the environmental side, rather than its integration with the social and governance aspects,” said Shin Furuya, lead research analyst, Asia Pacific, for Domini Social Investments. “Sustainability is not just about the risk itself -- the concept is much broader than many people think.”   According to Mark Podolsky, CFP, a registered investment advisor from Financial Solutions Associates, “The biggest misconception is that sustainability investment attains a lower return. If you do it right, the opposite is true. The most important thing is to have the right strategy.”

Help Build a New Resource: The Top 10 Most Important Books on Sustainability

The reading list for sustainability is getting mighty long.  More than 51,000 books come up in a simple search on Amazon.  So as an experiment, we're going to crowdsource a reading list -- scratch that -- THE reading list.  

Step 1: Over the next week, send us the list of your top three favorite books on the subject.  They can focus on the economic, social or environmental aspects of sustainability, historical or future-looking, explicitly about investing or not.  Your choice.  

Step 2: At the end of the week, we'll set up a poll on this blog listing the top 50, and then everyone can vote to figure out the top 10 in honor of the index's anniversary.  

To contribute your thoughts: type your suggestions under this blog post, or share them on twitter (tagging it with #sustbooks) or post a video describing the book and why it's valuable on Youtube (tagging it with DJSI10).  Thanks for participating in the experiment and may the winning books steer us to a sustainable future.

Speech Preview: Richard Sandor of the Chicago Climate Exchange

It’s not every day that a person recognized as a “Hero of the Environment” by TIME Magazine offers his thoughts on what’s ahead. But then again, not every day is September 22^nd. Dr. Sandor is the Chairman and Founder of the Chicago Climate Exchange, the world’s first and North America’s only voluntary, legally binding integrated greenhouse gas emissions reduction, registry and trading system and Chicago Climate Futures Exchange. He also serves as Executive Chairman of Climate Exchange plc. (CLE.L), an AIM-listed company which owns CCX and CCFE and the European Climate Exchange, Europe’s leading exchange operating in the European Union Emissions Trading Scheme. And he is a member of the index design committee for the Dow Jones Sustainability Indexes.

Here is an interview he gave on Bloomberg in early July on the Waxman-Markey bill. His full bio can be seen here.  We'll be posting video of the speech Tuesday night for people to discuss and share. 

Poll: When the recession recedes... Click your answer below

Online Surveys & Market Research

Dow Jones Indexes, SAM and STOXX Welcome Jamison Manion to 10th Anniversary Event

Jamison J. Manion (connect to him here through LinkedIn)is the President of Workforce Engagement Solutions, LLC based in Midlothian, VA.  WES is dedicated to its clients’ becoming Sustainable Responsible Businesses.   WES helps clients balance the three spheres of sustainability (people, profits and planet) through development and implementation of management systems, enabling technologies, metrics, and training.  Utilizing a balanced approach, WES clients achieve success as measured against the criteria embodied by the Dow Jones Sustainability Index™.

Jamison began his career attending the United Sates Navy’s prestigious Nuclear Power School, where he later taught principles of mechanical operations and maintenance.  He went on to serve aboard submarines as an operator and mechanic.  He promoted up to become a maintenance manager and Engineering Watch Supervisor in charge of the nuclear propulsion plant's mechanical systems.  Using his off time underway, he earned a bachelor’s degree in sociology/psychology from the University of the State of New York's Regents Program.   He transitioned to civilian life implementing training programs for power and utilities.  He went on to complete his MBA through Auburn University specializing in operations management and organizational design. 

Having worked at all levels in operations, maintenance, and human resources, Jamison’s unique background and education offers a complete package of technical, human resources, and business acumen which enables him to work effectively to improve the triple bottom line of sustainability.  

Climate Week NYC Starts September 20

September 20-26 is Climate Week NYC, a series of panel discussions, high-level confabs and public engagements designed to urge U.S. and world leaders to secure an ambitious, fair and binding international climate change treaty at the December UN Climate Change Conference (COP15) in Copenhagen. The full list of events can be found here. We're proud to be an affiliate. Hope everyone takes advantage of the events!

John Prestbo Has a Question for YOU – Respond via YouTube

In this short video, John Prestbo, the Editor of Dow Jones Indexes, looks back to where it all began with the sustainability indexes in 1999.  And he'd like to ask you something:

What issue do YOU think should be top of mind for the sustainability community over the next 10 years?

Use your cell phone video camera, webcam, Flip cam, or any other camera and upload your response to YouTube. John will recognize his favorites at the September 22^nd event and respond. Remember to tag the video with “DJSI10"

Take a Tour of 10 Years of Sustainability News

Google’s news archive has stories citing the Dow Jones Sustainability Indexes all the way back to their start in ’99. Start your tour here. 

Charting the Past 10 Years

This picture shows the 10-year performance of the Dow Jones Sustainability World Index. Feel free to use this picture on your blogs, tweet the link to your friends and share on your social networks.

CSR? SRB? CR? CC? Which Term Best Describes Good Corporate Behavior?

Fabian Pattberg, founder of the 3,000-member Sustainabilityforum.com, has created a fascinating poll examining the different terms used to describe responsible business practices.  Nearly 50 people have answered so far.  Add your voice to the discussion (poll closes September 20).

Which Way Forward on U.S. Climate Legislation?

Though healthcare is dominating the U.S. Congress right now, climate change legislation is in the air.  If you haven’t had a chance to read it yet, here’s a link to the draft American Clean Energy & Security Act of 2009. You can also follow the coverage on the bill in the blogosphere and watch related videos on YouTube.  

In case you missed it: J&J, Coke and Samsung Added to Dow Jones Sustainability World Index

Every September marks the release of SAM’s annual review of the DJSI family’s component companies. In case you missed it, the news this year is that 33 companies have been added to the Dow Jones Sustainability World Index, and 33 were dropped. The biggest additions are Johnson & Johnson, Coca-Cola and Samsung Electronics. The biggest deletions are National Grid, Mitsubishi Estate and SABMiller. Read the full press release here.

Sustainability Education Sprouting Worldwide

This month, 92 students walked through the doors of The Masdar Institute, the world’s first graduate-level university focused on sustainability. Located in Abu Dhabi, UAR, the institute represents the latest green shoot to sprout in the field of sustainability education. According to Newsweek, “universities have launched at least 27 sustainability-themed programs, degrees, or certificates in 2007, up from just three in 2005.” Check out the video below profiling Masdar below, and related stories here and here.

Share your thoughts: Did a certain class in college get you hooked on sustainability?

Dow Jones Indexes, SAM and STOXX Welcome Robert Thomas, President of Social(k) to 10th Anniversary Event

 

Robert (“Rob”) Thomas is the president of Springfield, MA-based Social(k), the most diverse socially responsible retirement investment platform in the U.S. 

Thomas graduated from Bates College in Maine in 1980 with a degree in religion. He worked with several companies in the wine and spirits industry, eventually creating “Krank20” which manufactured a popular caffeinated water beverage. In 1998, he sold the business and joined a large national wire house first as a financial advisor then as a retirement plan consultant.

Independently and in conjunction with ExpertPlan, a paperless New Jersey-based 401(k)/403(b) recordkeeper, Thomas in 2005 created Social(k) to offer socially conscious investors the same breadth and depth of investment options available in conventional retirement programs. The platform offers more than 150 screened socially responsible funds and more than 4000 conventional funds to choose from and has been welcomed by the socially responsible community.

In addition, approximately 500 financial advisors nationwide have registered with Social(k) so as to be able to offer its unique retirement program to their clients as an alternative to the limited options normally offered through today’s traditional sponsored programs.

Due to the instant popularity of the Social(k) plan, ExpertPlan presented Thomas with the "Partnership in Success Leadership Award" in October 2006. Social(k) was a finalist for the SRI in the Rockies’ 2007 SRI Service Award and Co-op America’s Green Business Leadership Award in both 2007 and 2008.

Rob Thomas is a third generation resident of Longmeadow, MA.

Poll: Economic, Environmental or Social? Click your answer below

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Feel free to add your thoughts on WHY in the comments section below.

Resource Alert: Top Ten Twitterers on Sustainability

Sure, sustainability advocates pride themselves on long-term thinking, but what if you need to know the latest news and insights RIGHT NOW? For that, we offer the top ten twitterers on Sustainability, as ranked by WeFollow.com. The site allows you to tag your twitter account with a few key words. So if you tweet regularly on sustainability, add yourself to the directory. 

1. Treehugger
2. environow
3. greennews
4. GreenbyDesign
5. TheGreenHome
6. justmeans_CSR
7. Martin_CSR
8. joegoldfarb
9. OakleighVermont
10. TaigaCompany   

Set the Agenda: What Issue Do YOU Think Should Be Top of Mind Over the Next 10 Years?

The economic crisis has a lot of people thinking about how we look ahead. And while “environment” is probably the first thing that comes into people’s mind when they hear about sustainability investing, “foresight” is truly the operative word. 

So what issues should be at the top of the sustainability investing community’s agenda over the next 10 years? Comment below this blog post or on Twitter (remember to add #DJSI10 after each tweet). 

10 Years Old and Looking…Sustainable!

Welcome to the DJSI10 blog. Over the next few weeks, we’ll be marking the 10^th anniversary of the launch of the Dow Jones Sustainability Indexes, exploring the issues sustainability investing faces in the next decade and counting down to the celebration on September 22^nd. 

The principles of sustainability have gained traction as the result of spirited discussion—and sometimes debate. But given volatile markets and rising CO2 levels, we need to accelerate these conversations and spread these ideas to new places. Many of you are members of social networks like LinkedIn and Facebook, you comment on blogs and tweet your insights to colleagues and friends who respect your point of view. Tap those channels now. Share your insights on the progress made over the past 10 years and the things we must accomplish going forward. Share the articles you’re reading, the videos you’re watching. Let your own voice be heard. 

We’ve set up several channels to help:

1. Follow us on Twitter at http://Twitter.com/DJSI10

2. Offer your thoughts on Twitter and then type #DJSI10 so people can know where to find all the comments related to this topic

3. Watch for our videos on YouTube and submit your own: What do you think the next 10 years hold for Sustainability? http://www.youtube.com/user/DJSI10

4. We’ve created a series of pictures you can use on your own blogs and social networks. You can also submit a headshot and bio so people can look for you at the September 22^nd event. http://www.flickr.com/photos/djsi10/

Savor the anniversary. Look ahead. And we’ll see you at the party.