BP Removed from Dow Jones Sustainability Indexes
Another nail in BP’s coffin. The oil company responsible for the worst environmental disaster in U.S. history was removed from the Dow Jones Sustainability Indexes (DJSI) effective May 31, 2010.
The DJSI are the first global indexes tracking the financial performance of leading sustainability-driven companies worldwide. Socially responsible investors use the DJSI to help them determine where their investing dollars should go. Many of us have 401(k) or IRA accounts, and we can choose to align our investments with our values.
Corporations pay very close attention to Wall Street, and socially responsible investing is a great way to get your point across. BP is learning that the hard way.
In a press release, Dow Jones and SAM (Sustainable Asset Management) Group stated…
“The extent of the oil-spill catastrophe in the Gulf of Mexico and its foreseeable long-term effects on the environment and the local population – in addition to the economic effects and the long- term damage to the reputation of the company – were included in the analysis leading up to BP’s removal.”
The sustainability index components are monitored daily for any new critical issues, and the analysis assesses a company’s involvement in economic, environmental or social crisis situations. To be eligible for the DJSI, a company’s crisis management should reflect its stated principles and policies. And BP’s actions clearly do not.
Now, the question is… are you unknowingly investing in BP through your 401(k) or IRA? Call your investment firm to find out.