Abstract

The aim of sustainability performance indices is to provide a benchmark for financial products and to measure the financial performance of companies that lead their industry in terms of sustainability. This paper examines sustainability performance indices on global financial markets and determines the extent of Australian representation within these global indices. The paper outlines the emergence of nine major market indices designed to track the performance of a variety of listed companies that are seen to have desirable sustainability practices. These indices include: ARESE Sustainable Performance Indices; Dow Jones Sustainability Index; FTSE4Good Indices; Calavert, Domini Social Index; E. Capital Partners Ethical Index; Ethibel Sustainability Index; Humanix Ethical Index; and Jantzi Social Index. Following a brief description of each of these indices, this paper catalogues each index according to: (a) their launch date; (b) the markets they cover; and (c) their Australian weighting. This section concludes by identifying that Australian listed companies are not well represented among these major indices.

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