1 - How the assessment system of the DJSI works
Companies must undergo an integrated assessment on economic, environmental and social issues: over 100 qualitative and quantitative questions, which vary depending on the companies' sector.
Economic factors: innovation management, the supply chain, risk management and, of course, company policies and practices.
Environment: environmental management systems, climate change strategy and environmental parameter performance (energy consumption, emissions, water and waste management).
Social aspects: the human capital development, the ability to attract talent , welfare, health and safety, digital inclusion or stakeholder engagement.
Each of the three areas analysed has a specific weight when calculating the final score.
2 – The most highly regarded aspects in these company assessments
To be an industry leader, or at least to be included in the Europe index – as is the case of Telecom Italia for 16 years in a row – it is essential for a company to have a robust long-term sustainability strategy, as well as a series of initiatives to materialise this strategy.
It is definitely very rewarding for a company to be geared towards managing the issues under examination, i.e. setting out a policy, pursuing programmes in line with the policy and, in turn, having a monitoring and assessment system in place with very clear indicators in order to set goals.
3 – Why is it so important for a company to be positioned in the Dow Jones World and Europe indexes
Socially responsible investors are encouraged to include companies that are eligible for sustainability indexes – such as the Dow Jones and FTSE4Good – in their portfolios, or at least to consider this information when making investment decisions.
Ultimately, being recognised as an Industry Leader and being included in the indexes definitely has a positive impact on a company's visibility and reputation.
4 – The TIM persons involved in answering to the Dow Jones questionnaire
This activity is carried out along two fronts:
1. with sustainability analysts – explaining and demonstrating the value of our economic, social and environmental initiatives;
2. within the company – getting to grips with the latest trends on sustainability issues and incorporating them within the company so it can make assessments and intervene in any areas for improvement.
During the phase of gathering information and setting out response strategies for the Dow Jones, more than 100 persons from almost all TIM areas are involved: the broad scope of the topics covered – often very different from one other – means that almost the entire company is involved.
5 – The Dow Jones as a starting point for self-assessment and potential improvement
It's important for a company to undergo a sustainability assessment, not only as a questionnaire to be included in an index, but also as an opportunity to assess their commitment to sustainability issues and see if it corresponds to what specialised industry analysts are looking for.
This comparison can be a starting point for identifying areas for improvement and working to stay in line with best practices at international level.