JONES SUSTAINABILITY INDEX
finance
"Inclusion in the DJSI is
recognition of the commitment
of Heineken and its employees to
sustainability and transparency
about sustainability issues," says
Van Rijn.
THE WORLD OF HEINEKEN
Text: Chris Bull
Image: Sascha Nowotka
Sustainability and profits can go hand in hand
Heineken has been added to the list of companies included in the SAM/Dow
Jones Sustainability Index (DJSI), a global indicator which tracks and reviews
the performance of sustainability-driven corporations around the world.
The DJSI consists of more than 300 companies that represent the top 10%
of the leading international corporations in 58 DJSI sectors in 34 countries.
Accounting for issues such as corporate governance, climate change,
supply chain standards and labour practices, the review of the DJSI is based
on a thorough assessment of a company's economic, environmental and
social performance.
The Sustainability Asset Management Group (SAM) is an independent
asset management company, which specialises in investments in
sustainable companies. SAM carries out systematic research to identify
successful companies that meet sustainability criteria.
"In order to be considered for the DJSI," says Mark van Rijn, Manager
Company and Society, Group Corporate Relations, "an organisation must
accurately fill in a detailed questionnaire providing SAM with sufficient
information to rate its sustainability performance. All sustainability claims
need to be backed up by corresponding evidence, such as sustainability
reports and other sources."
SAM then allots the organisation a sustainability ranking which in turn
is used by Dow Jones to determine the company's position on the
Sustainability Index. "The DJSI is a 'best in class' indicator," says Van Rijn,
"meaning that Heineken is placed in a specific category [beverages] and
rated in comparison to other companies in the same category."
Heineken has been included in the DJSI in the past, but for the past three
years it has not been listed due to improved performance by its
competitors. Heineken's return to the Sustainability Index for 2006 is
noteworthy, as it is now co-leader in the beverages sector alongside
SABMiller.
"Inclusion in the DJSI is recognition of the commitment of Heineken and
its employees to sustainability and transparency about sustainability
issues," says Van Rijn. "It's important for Heineken staff to realise that our
business isn't just about brewing and selling beer—it's about operating in a
positive, sustainable manner. If we want to be a market leader, we must
function in a manner that earns us a 'license to operate', requiring
leadership in all aspects of operation, including corporate social
responsibility."
The DJSI positively influences the investment decisions of investors and of
asset managers who have licensed the DJSI as benchmarks for a variety of
sustainability-driven portfolios. Heineken has been included in both the
global DJSI World and in the European DJSI Stoxx indices, respectively
representing the top 10% and 20% of companies worldwide. In this way, the
DJSI is perceived as the most prestigious sustainability index in the world.
Heineken's achievements have kept in line with the commitments to
continuous overall performance improvement. Details of the progress made
over the past year have been reported in the updated Heineken
Sustainability Report that was published in August.
Prior to its inclusion in the DJSI, Heineken was already listed on the
FTSE4Good Index. For inclusion in this index, companies must be working
towards environmental sustainability and developing positive relationships
with stakeholders as well as upholding and supporting universal human
rights.
"The criteria upon which the DJSI is based—such as corporate
governance and labour practices—are aspects of the business that
Heineken continually aims to improve. Any step forward in these areas can
only lead to better business practices within the organisation, as strategic
programs and solutions are developed to address the social aspects of
brewing beer. The recognition by our stakeholders of our efforts in this area
is an important prerequisite for the future growth of our business."
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