Australian companies produce strong DJSI

The Dow Jones Sustainability Index (DJSI) is arguably one of the most recognised sustainability benchmarks globally and Australian companies have done well of over the years. DJSI picks the company with the highest sustainability score in each industry. Out of the 61 industries, two of them have their leaders headquartered in Australia: Dexus in Real Estate and Tabcorp in the Casino & Gaming industry. Fortescue Metals completes the Australian trio which has been awarded the Gold Class distinction, with Fortescue Metals sitting only one score point behind the Korean leader in its industry Hyundai Steel

Australian companies continue to punch above their weight

Over its 20 years history, Australian companies have done consistently well. Roughly 2.9% of companies invited to participate in DJSI globally are based in Australia, which is simply a result of the size of Australian businesses as this is purely down to market capitalisation. However, when we look at most sustainable companies, 4.2% of the DJSI World members are Australian. You’ll find the full list of companies with Gold, Silver and Bronze Class distinction in S&P sustainability Yearbook.

Investors but also consumers or the general public can get deep insights from the DJSI data, which is publicly available from this year. Below we have plotted the results of the Australian companies in 2020, grouped by the overarching sectors. Yet there are two sectors specifically worth highlighting:

  • Real Estate lead the way globally
    Australian real estate companies have always featured high in DJSI. In fact, three of the top 4 at global stage call Australia their home.
  • The Banks are still recovering
    Similar to real estate, the banking sector globally had been led by the Australian Big 4 – until the Royal Commission that is. Scores have dropped in the aftermath and as of 2020, ANZ remains the only Australian bank in the global top 10 consisting of financial institutions mostly based in Latin America and Asia.
Communication Services
 
Consumer Discretionary
 
Consumer Staples
 
Energy
 
Financials
 
Health Care
 
Industrials
 
Information Technology
 
Materials
 
Real Estate
 
Utilities
 
 

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