Nuclear utilities in global sustainability index
13 September 2010
A number of US and European nuclear power utilities have been included in the latest review of the Dow Jones Sustainability World Index (DJSI World), one of the leading international benchmarks for corporate contribution to sustainable development.
The index, launched in 1999, comprises more than 300 companies that represent the top 10% of the leading sustainability companies out of the biggest 2500 companies in the Dow Jones Global Total Stock Market Index. In order to be chosen, companies must regularly demonstrate, through on-going contact with analysts and by filling out an annual questionnaire, that they are putting first-rate sustainability measures into practice. The DJSI World - compiled and published by Dow Jones Indexes and Sustainable Asset Management (SAM) of Switzerland - is reviewed annually.
The DJSI follow a best-in-class approach and include sustainability leaders from each industry on a global and regional level (Europe, North America and Asia Pacific) respectively. The annual review of the DJSI family assesses issues such as corporate governance, risk management, branding, climate change mitigation, supply chain standards and labour practices. It accounts for general as well as industry specific sustainability criteria of each of the 57 sectors defined according to the Industry Classification Benchmark (ICB).
In the latest review, 48 companies have been added to the DJSI, while 46 have been removed. In the utilities sector, eight nuclear power plant operators are listed. These include Germany's EOn and RWE; Spain's Endesa and Iberdrola; Entergy and Pacific Gas & Electric (PG&E) of the USA; Italy's Enel; and Fortum of Finland.
RWE has been included in the index every year since it was launched. Alwin Fitting, a member of RWE's executive board in charge of corporate responsibility, commented: "We take our responsibility very seriously, so we are delighted that our efforts are being recognized by inclusion in the Dow Jones Index." He added, "The fact that we have been included in the index now for twelve years in a row is a great honour and an incentive for RWE to continue showing the same energy to lead."
Endesa has been included in the index for the tenth consecutive year. Andrea Brentan, the company's CEO, said that Endesa's continued inclusion in the index underscores its real commitment to meeting the power needs of citizens in a way that is safe, cost-efficient and guided by principles of sustainability.
Head of PG&E Peter Darbee noted, "We are increasingly adapting our strategies, our operations and our culture to drive positive results across the 'triple bottom line' of people, planet and profit."
CEO and general manager of Enel, Fulvio Conti, commented, "Enel's goal is to be a global benchmark, by demonstrating that a major company can generate healthy profits but at the same time be socially responsible and operate with the utmost respect for people and the environment."
Iberdrola makes FTSE4Good
Meanwhile, during a semi-annual review of the FTSE4Good index, Iberdrola has become the first company to meet demanding standards in nuclear operations that are set by the evaluating committee. This is the first edition of the index to include groups that carry out a part of their activity in the nuclear field.
In a statement, FTSE Group said: "As part of the review, new stringent criteria regarding nuclear safety and waste disposal were also introduced for companies involved in nuclear power generation." It added, "To be included in the index, companies involved in nuclear power generation are assessed on their nuclear safety and waste disposal policies, management systems, disclosure and performance as well as the existing FTSE4Good requirements."
The FTSE4Good index series was launched in 2001 for investors that wanted to only invest in companies with good standards of corporate responsibility and that minimize social and environmental risk.
Researched and written
by World Nuclear News