Dow Jones EURO STOXX Sustainability Index

DEFINITION of 'Dow Jones EURO STOXX Sustainability Index'

A stock index that measures the financial performance of leading Eurozone companies as measured by their sustainability and environmental practices. The stock universe is the Dow Jones STOXX Sustainability Index, from which only companies operating in Eurozone nations (countries that have transitioned to the Euro) are chosen.

Companies are given a sustainability score based on a comprehensive review by research firm SAM Group; annual surveys are conducted on all potential companies so that company progress and new initiatives can be constantly measured and compared against industry peers.
The index is weighted based on free-float market capitalization and changes to the index are made annually after updated company sustainability scores have been obtained.

Quarterly weighting adjustments are also made as the market caps of member companies fluctuate.

BREAKING DOWN 'Dow Jones EURO STOXX Sustainability Index'

The sustainability score for each company is calculated using a comprehensive weighting system that looks at company efforts in areas such as climate change, energy efficiency, knowledge management, shareholder relations and corporate governance. In addition, companies are evaluated compared to their own industry, as each industry has its own parameters and inherent environmental issues.

Sustainability is a long-term company strategy, and includes both economic and social costs that typically cannot be measured within a quarterly or annual time frame.

RELATED TERMS
  1. Dow Jones EURO STOXX 50

    A market capitalization-weighted stock index of 50 large, blue-chip ...
  2. STOXX

    A series of market indexes that are representative of the European ...
  3. Dow Jones Global Titans 50 Index

    A market capitalization-weighted index of 50 of the largest multinational ...
  4. Weighted Average Market Capitalization

    A stock market index weighted by the market capitalization of ...
  5. Dow Jones U.S. Market Index

    A market-capitalization-weighted index maintained by Dow Jones ...
  6. Dow Jones 65 Composite Average

    A composite index that measures changes within the 65 companies ...
Related Articles
  1. Investing

    The Three Pillars of Corporate Sustainability

    Corporations are under pressure to show how they plan to deliver their goods and services in a sustainable manner. But what does this all mean?
  2. Mutual Funds & ETFs

    Index Investing: What Is An Index?

    An index is a statistical measure of the changes in a portfolio of stocks representing a portion of the overall market. It would be too difficult to track every single security trading in the ...
  3. Investing Basics

    An Introduction To Stock Market Indexes

    Investopedia explains the five most talked about indexes and what makes them all different.
  4. Mutual Funds & ETFs

    Index Investing: Conclusion

    We hope this tutorial has given you insight into how you can track the market, use it as a benchmark and make investments. Some points to remember: An index is a statistical measure of the changes ...
  5. Stock Analysis

    Why GE's Freefall Didn't Pull Down The Dow

    GE took a pounding Friday, yet the DJIA hardly moved. It's a flawed system where the more a company falls, the less it counts.
  6. Mutual Funds & ETFs

    3 Types Of Indexing For ETF Success

    ETF success relies on the index with which it's paired. Discover three index genres for tracking average market performance.
  7. Investing Basics

    Why You Need To Know About S&P Dow Jones Indices

    This Article introduces the S&P Dow Jones Indices (SPDJI), available variant categories and index trading advantages
  8. Investing Basics

    Understanding The S&P Dow Jones Indices

    S&P Dow Jones Indices offer more than 830,000 indices, including the S&P 500 and the Dow Jones Industrial Average.
  9. Investing

    The One ETF To Own The Top Internet Company Stocks

    Grab a pie of booming online businesses in one shot! Here is the one ETF that lets you own stock in the top Internet companies.
  10. Personal Finance

    Five Companies Leading The Green Charge

    Corporations that reduce their environmental footprint anticipate large long-term gains.
RELATED FAQS
  1. Can you buy shares in the Dow Jones Industrial Average (DJIA)?

    Invest in the Dow Jones Industrial Average index through index funds or ETFs. Read Answer >>
  2. Is the Dow Jones a stock exchange?

    Learn about the Dow Jones Industrial Average and its impact. This historically significant index provides a daily snapshot ... Read Answer >>
  3. Is the Dow Jones a public company?

    Find out how the Dow Jones Industrial Average tracks the health of the U.S. economy. This fluctuating number indicates the ... Read Answer >>
  4. What is the Dow Jones Industrial Average (DJIA) all-time high?

    Inching ever higher, the Dow Jones recorded new highs in May 2015. Since the index was first calculated in 1896, it has grown ... Read Answer >>
  5. Who or what is Dow Jones?

    Dow Jones, or more precisely "Dow Jones & Company", is one of the largest business and financial news companies in the ... Read Answer >>
  6. How do you compare the Dow Jones Industrial Average (DJIA) and the Toronto Stock ...

    See how the Dow Jones Industrial Average and TSX Composite move according to factors in their respective countries and from ... Read Answer >>
Hot Definitions
  1. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  2. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  3. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  4. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  5. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  6. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
Trading Center