Stockholm (NordSIP) – The annual rebalancing and reconstitution of Dow Jones Sustainability Indices (DJSI) is now over, and the results have been officially announced, effective Monday, 18 December. Given the size of the passive investment market globally, there are bound to be palpable consequences beyond the purely symbolic when the world’s leading index provider decides to include or exclude companies from this exclusive investment universe.
One Nordic firm with an extra reason to rejoice at the latest DJSI announcement is Storebrand ASA, which has made it into the index this year. This is a true achievement given that the comprehensive and widely recognised ranking of listed companies’ sustainability credentials includes only those in the top ten per cent of each industry internationally. Among 3.400 companies assessed this year, Storebrand is ranked in the top three per cent in global insurance.
There is at least one more cause to be honoured by the inclusion. Despite the common perception that Nordic firms are leading the pack when it comes to sustainable investing, the fact is that there are only two financial companies representing the region in the index currently, Storebrand and EQT AB. Upon being selected for the DJSI last year, Christian Sinding, EQT’s CEO & Managing Partner, called the inclusion “a welcome testament to EQT’s purpose to future-proof companies and make a positive impact.”
Odd Arild Grefstad, CEO of Storebrand, appears equally delighted to make it into the index this year. “We are proud to receive such recognition,” he comments. “We have very clear goals for our work with sustainability within the entire group, including pension, investments, banking, and insurance. This ranking is a good indication that we succeed in making sustainability a driving force for all employees.”
The recognition should not come as a surprise to those familiar with the Norwegian financial firm. One of the founding members of the United Nations-convened Net-Zero Asset Owner Alliance, Storebrand is renowned for its longstanding firmwide commitment to sustainability themes and for its approach to integrating climate and sustainability criteria in its business activities right across the board. Storebrand’s most significant impact on the environment and society comes through its investments of NOK 1.100 billion. At the same time, the firm works to constantly improve its own operations and procurement.
“For all companies that work with a long-term perspective, it is economically sensible to continuously improve on sustainability,” explains Grefstad. “We believe it is in our customers’ interest and that our investments, products and own operations will be more profitable in a future world that handles the climate crisis, restores and takes care of biological diversity, has low levels of corruption and high labour participation,” he adds.
Yet, a flattering assessment by DJSI does not seem to lead to complacency at Storebrand.
“We must step up and work harder,” concludes Grefstad.
