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 STOXX Sustainability ...

    A stock index that measures the financial performance of leading ...
  2. Dow Jones Sustainability World ...

    A global index consisting of the top 10% of the largest stocks ...
  3. Dow Jones Sustainability United ...

    A free-float market capitalization weighted index that captures ...
  4. Dow Jones Sustainability North ...

    A stock index that captures the top 20% of the largest 600 companies ...
  5. Dow Jones EURO STOXX 50

    A market capitalization-weighted stock index of 50 large, blue-chip ...
  6. Dow Jones STOXX 50

    A stock index representing 50 of the largest companies in Europe ...
Related Articles
  1. Markets

    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. ETFs & Mutual Funds

    The Top 5 ETFs to Track the Euro Stoxx 50 for 2016 (FEZ, HFEZ)

    Learn about a handful of the world's top ETFs designed to provide exposure to large-cap eurozone equities through the EURO STOXX 50 Index.
  3. ETFs & Mutual Funds

    FEZ: SPDR EURO STOXX 50 ETF

    Learn about FEZ, the Euro Stoxx 50 ETF. FEZ tracks the 50 largest companies in Europe, making it the Dow Jones Industrial Average of Europe.
  4. ETFs & Mutual Funds

    An Introduction To Stock Market Indexes

    Investopedia explains the five most talked about indexes and what makes them all different.
  5. 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.
  6. Investing

    What Is the Best Measure of a Company's Financial Health?

    Discover the single best financial metric that investors can use for determining the financial health and long-term sustainability of a company.
  7. ETFs & Mutual Funds

    The Pros and Cons of Indexes

    Learn about the advantages and disadvantages of stock indexes and passive index funds. Discover how there is an opportunity cost to using index funds.
  8. Investing

    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
  9. ETFs & Mutual Funds

    SPDR Euro STOXX 50 ETF: Who Is Invested?

    Find out which institutional investors are investing in the SPDR Euro STOXX 50 ETF, and who's buying, who's selling, and who's the largest shareholder.
  10. Investing

    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.
RELATED FAQS
  1. Where can I find a company's stance on the environment?

    A company's stance on the environment is typically found in the company's statement on corporate sustainability. These statements ... Read Answer >>
  2. 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 >>
  3. How do you compare the Dow Jones Industrial Average (DJIA) and the Nasdaq?

    The Dow Jones and Nasdaq work in different ways to signal market trends. Learn which is best for you. Read Answer >>
  4. 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 >>
  5. 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 >>
  6. When can you trade the stocks in the Dow Jones Industrial Average (DJIA)?

    Find out when you can trade shares linked to the Dow Jones Industrial Average during NYSE and Nasdaq trading sessions. Read Answer >>
Hot Definitions
  1. Frexit

    Frexit – short for "French exit" – is a French spinoff of the term Brexit, which emerged when the United Kingdom voted to ...
  2. AAA

    The highest possible rating assigned to the bonds of an issuer by credit rating agencies. An issuer that is rated AAA has ...
  3. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  4. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  5. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  6. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
Trading Center