June 16, 2009

NASDAQ Adds Sustainability Index

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The NASDAQ has joined the trend of tracking companies by their sustainability efforts. The NASDAQ OMX CRD Global Sustainability 50 Index tracks companies on the “leading edge of self-reporting sustainability activities,” said NASDAQ OMX Executive Vice President John Jacobs.

According to a press release, the index tracks a company’s efforts to:

  • produce a publicly available corporate sustainability/responsibility report;
  • disclose compatible sustainability data according to (GRI) G2/G3 guidelines;
  • report at least 20 percent of total core environmental performance indicators;
  • report at least 20 percent of the total core social performance indicators; and
  • report at least 70 percent of the total financial performance indicators.

The index is a partnership between NASDAQ OMX and CRD Analytics.

Earlier this year, the Standard & Poor’s launched the S&P U.S. Carbon Efficient Index, which measures the performance of large cap U.S. companies with relatively low carbon emissions, while closely tracking the return of the S&P 500. The index is part of the S&P’s global thematic index series, which covers green themes including water, forestry, ecology and carbon efficiency.

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Shouldn’t companies in a “sustainability index” be doing more than merely REPORTING???

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