Dow Jones Names Philips Market Leader in Sustainability

Dow Jones Names Philips Market Leader in Sustainability

Royal Philips Electronics has been ranked number one by the Dow Jones Sustainability Index World in corporate sustainability among companies from the consumer electronics, leisure goods, home construction, apparel, and airline sectors. The news comes just six months after the release of Philips’ first annual corporate sustainability report, in which the company measures its progress against a triple bottom line of economic, environmental, and social criteria.

Dow Jones Sustainability Indexes track the financial performance of the leading sustainability companies worldwide, providing asset managers with reliable and objective benchmarks to manage sustainability-driven portfolios. Currently, there are over EUR 2.2 billion in DJSI-based funds. The DJSI World covers the largest 2,500 companies by market capitalization in the Dow Jones Global Index. Only the top 10% of these companies are selected for the DJSI World according to economic, environmental and social criteria. Philips ranked first in the Cyclical Goods & Services market sector and also came out on top in the DJSI STOXXsm index ranking of approximately 600 of Europe’s leading companies.

“Companies that pursue sustainable development have, on average, provided a higher return to shareholders than other companies. By measuring a company’s economic, environmental and social dimensions we can provide a more complete basis for evaluating shareholder value,” said John Prestbo, editor of Dow Jones Indexes. “To be identified as the leader in its sector, Philips had to demonstrate high-caliber governance, knowledge management, environmental performance, human rights policies and other factors. All of these criteria are carefully assessed in selecting companies for the index, and in our view all contribute to the long-term success of a company,” he continued.

Philips was measured on 10 economic, 6 environmental, and 10 social parameters. The analyzed companies are assigned a sustainability score for each of the three key areas and are ranked accordingly within their industry group. In its sector Philips was rated highest in corporate governance and measurement systems, and received a 100% rating on its environmental reporting, 92% on its environmental policy and 95 per cent on its product stewardship. Philips also scored higher than the industry average on corporate citizenship and philanthropy, labor practices, and human capital.
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