LATAM Airlines Group is the leading airline in the Americas on the Dow Jones Sustainability ‘World’ Index as responsible investment reaches new heights
The Dow Jones Sustainability Index (DJSI) is the most internationally respected index among investors and the ‘World’ category recognizes the performance of the top 10% of major companies in the area of sustainability
LATAM Airlines Group (‘LATAM’) today was named in the ‘World’ category of the Dow Jones Sustainability Index (DJSI) for the fourth consecutive year, representing one of only three airline groups in this category globally.
The DJSI World index comprises the leading 10% of global companies in the ‘S&P Global Broad Market Index’ in terms of sustainability, based on an annual independent assessment of economic, social and environmental criteria.
As part of the corporate sustainability assessment, LATAM achieved 100% scores for ‘efficiency’, ‘reliability’ and ‘climate strategy’, and was the only airline group in the world to achieve this score in this final category.
“In a world where responsible investment and sustainable practices are increasingly important, it is encouraging to be considered once again as a global leader in this field and it reflects our goal of building a strong and robust company for both today and tomorrow,” said Enrique Cueto, CEO of LATAM Airlines Group. “As an airline group, we are committed to incorporating sustainable thinking and practices into every aspect of the business, not only to deliver value for our passengers, shareholders and partners, but also for the communities in which we operate. As part of this commitment, we will continue to advocate sustainable tourism to support the social and economic development of Latin America as well as the preservation of its cultural and natural heritage.”
The Global Sustainable Investment Alliance reports that responsible investment – based on the same economic, social and environmental criteria – is growing significantly and was applied to 26.3% (US$22.89 trillion) of worldwide assets under management (AUM) in 2016. This marked a 25.2% increase from 2014, when US$18.28 trillion of assets were managed under responsible investment strategies.
As of August 2017, there were also more than 1,750 signatories to the Principles for Responsible Investment (PRI), a United Nations partner and the leading proponent of responsible investment. Together, its signatories are responsible for approximately US$70 trillion of assets under management, representing more than a seven-fold increase from when the PRIs were published in April 2006.
LATAM Airlines Group is currently one of two Chile-based companies on the DJSI World Index. Only 11 other companies from the region were listed on this index – six from Brazil and five from Colombia.
Criteria measured by the Dow Jones Sustainability Index
The Dow Jones Sustainability Index evaluates and recognizes companies based on economic, environmental and social criteria including: corporate governance and compliance, social reporting, development of human capital, efficiency, customer relations management as well as environmental reporting and management.
The evaluation system adopts a ‘best in class’ logic which selects the companies with the leading performance in their respective industries each year.
This year, DJSI invited 3,484 companies – covering 60 industries in 47 countries – with the best financial performance measured by market capitalization in the S&P Global Broad Market Index to participate in its annual corporate sustainability assessment. Out of the companies invited, 319 (including LATAM Airlines Group) qualified for the DJSI World Index.
*According to the Global Sustainable Investment Alliance 2016 report