The Dow Jones Industrial Average (DJIA) , also referred to as the Industrial Average, the Dow Jones, theDow

30, or simply the Dow, is a stock market index, and one of several indices created by Wall Street Journaleditor and Dow Jones & Company co founder Charles Dow! "t is now owned by the C#$ %roup, who is the ma&ority owner of Dow Jones "ndexes! The avera'e is named after Dow and one of his business associates, statistician ()*$+,"-. /http011en!wikipedia!or'1wiki1$dward2Jones23statistician4/ $dward Jones! "t is an index that shows how 56 lar'e, publicly owned companies based in the 7nited States have traded durin' a standard tradin' session in the stock market!
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"t is the second oldest 7!S! market index after the Dow Jones

Transportation ;vera'e, which was also created by Dow! The "ndustrial portion of the name is lar'ely historical, as many of the modern 56 components have little or nothin' to do with traditional heavy industry! The avera'e is price wei'hted, and to compensate for the effects of stock splits and other ad&ustments, it is currently a scaled avera'e! The value of the Dow is not the actual avera'e of the prices of its component stocks, but rather the sum of the component prices divided by a divisor, which chan'es whenever one of the component stocks has a stock split or stock dividend, so as to 'enerate a consistent value for the index! ;lon' with the -;SD;< Composite, the S&* =66 "ndex, and the +ussell >666 "ndex, the Dow is amon' the most closely watched benchmark indices trackin' tar'eted stock market activity! ;lthou'h Dow compiled the index to 'au'e the performance of the industrial sector within the ;merican economy, the index?s performance continues to be influenced by not only corporate and economic reports, but also by domestic and forei'n political events such as war and terrorism, as well as by natural disasters that could potentially lead to economic harm! Components of the Dow trade on both the -;SD;< @#A and the -)S$ $uronext, two of the lar'est stock market companies! Derivatives of the Dow trade on the Chica'o Board @ptions $xchan'e and throu'h C#$ %roup, the world?s lar'est futures exchan'e company, which owns C6D of the indexin' business founded by Dow Jones, includin' the "ndustrial ;vera'e!
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The Dow Jones "ndustrial ;vera'e was founded by Charles Dow on #ay >E, 9FCE, and represented the dollar avera'e of 9> stocks from leadin' ;merican industries! *reviously in 9FFG, #r! Dow had composed an initial stock avera'e called the Dow Jones ;vera'es, which contained nine railroads and two industrial companies that appeared in the Customer?s ;fternoon ,etter, a daily two pa'e financial news bulletin which was the precursor to The Wall Street Journal! @f the ori'inal 9> stocks formin' the Dow Jones "ndustrial ;vera'e compiled later in 9FCE, no lon'er railroad stocks, but purely industrial stocks, only %eneral $lectric is currently part of that index! Financial crisis @n September 9=, >66F, a wider financial crisis became evident when ,ehman Brothers filed for Chapter 99 bankruptcy alon' with the economic effect of record hi'h oil prices which reached almost H9=6 per barrel two months earlier! The DJ"; lost more than =66 points for only the sixth time in history, returnin' to its mid July lows below the 99,666 level! ; series of /bailout/ packa'es, includin' the $mer'ency $conomic StabiliIation ;ct of >66F, proposed and implemented by the Jederal +eserve and 7!S ! Treasury, as well as JD"C sponsored bank mer'ers, did not prevent further losses! ;fter two months of extreme volatility durin' which the Dow experienced its lar'est one day point loss, lar'est daily point 'ain, and lar'est intra day ran'e 3more than 9,666 points4, the index closed at a new twelve year low of E,=GK!6= on #arch C, >66C 3after an intra day low of E,GEC!C=
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durin' the #arch E session4, its lowest close since ;pril 9CCK, and had lost >6D of its value in only six weeks! Towards the latter half of >66C, the avera'e rallied towards the 96,666 level amid optimism that the ,ate >666s +ecession, the 7nited States (ousin' Bubble and the

%lobal Jinancial Crisis of >66FL>66C , were easin' and possibly comin' to an end! Jor the decade, the Dow saw a rather substantial pullback for a ne'ative return from the 99,GCK level to 96,G>F, a loss of a little over CD! Durin' the early part of the >696s, the Dow made a fairly notable rally attempt in the face of 'rowin' 'lobal concerns such as the >696 $uropean

soverei'n debt crisis and the Dubai debt crisis! ;lthou'h for the most part &ust a political event, the Dow closed at the 96,KF=!FC level on #arch >>, >696 followin' the passa'e of the landmark *atient *rotection and ;ffordable Care ;ct in Washin'ton! @n #ay E, >696, &ust after >056 pm $DT, the Dow Jones "ndustrial ;vera'e plun'ed by CCF!=6 points, an intra day loss of C!>D! The event later became known as the >696 Jlash Crash or the /Jlash Crash/!
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;lthou'h there was an immediate recovery, it was the

bi''est intra day fall ever! This would have put the tradin' day as the fifth worst market sell off on a percenta'e basis as well! The Dow bottomed out at C,FEC, and then recovered Muickly, eventually endin' at 96,=>6!5>, a loss of 5GK!F6 points or 5!>D!
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@n -ovember =, >696, the Dow would settle at the

99,GGG!6F level, its hi'hest close since September >66F!

is not a very accurate representation of overall market performance! Still. after many ad&ustments. critics like +ic $delman ar'ue that the DJ". eMuates to a K!=E 3916!95>59C9>=4 point With the current inclusion of &ust 56 stocks. is less than one 3meanin' the index is lar'er than the sum of the prices of the components4! That is0 where p are the prices of the component stocks and d is the Dow Divisor! $vents like stock splits or chan'es in the list of the companies composin' the index alter the sum of the component prices! "n these cases. in order to avoid discontinuity in the index. even thou'h the lower priced stock experienced a lar'er . is criticiIed for bein' a price wei'hted avera'e. which 'ives hi'her priced stocks more influence over the avera'e than their lower priced counterparts. spinoffs or similar structural chan'es. every H9 chan'e in price in a particular stock within the avera'e.dditionally. the Dow Divisor! The divisor is ad&usted in case of stock splits. the DJ".Calculation To calculate the DJ". the sum of the prices of all 56 stocks is divided by a Divisor. to ensure that such events do not in themselves alter the numerical value of the DJ". at first. it is the most cited and most widely reco'niIed of the stock market indices! 8>5:8>G: . the initial divisor was composed of the ori'inal number of component companiesN which made the DJ". the Dow Divisor is updated so that the Muotations ri'ht before and after the event coincides0 The Dow Divisor is currently 6!95>59C9>=! movement! Assessment 8>9:8>>: *resently. but takes no account of the relative industry siIe or market capitaliIation of the components! Jor example.! $arly on. a simple arithmetic avera'e! The present divisor. a H9 increase in a lower priced stock can be ne'ated by a H9 decrease in a much hi'her priced stock..

lternatively. %eneral $lectric. has the same effect as a H9 move in the lar'est component of the avera'e! The Dow would see the ne'ative effects of this price wei'hted avera'e durin' SeptemberL@ctober >66F with a former component . 9C55! (owever. 9C5>! -ot coincidentally. the latter of which includes all 7!S! eMuity securities. the stock collapsed from H>>!KE on September F to H9!5= on @ctober >KN contributin' to sendin' the Dow down rou'hly 5."%! Before its reverse split ad&usted stock price chan'e.vera'e was founded on #ay >E. is still around! By 9C>F the number of stocks increased to >6! By 9C>F the number of stocks hit 56! Durin' the %reat Depression the Dow was reduced to C6D of its 9C>C peak on July F.666 points! .merica and . 9FCE! . the lar'est one day percenta'e 'ain of 9=D happened soon after the C6D bi' drop on #arch 9=. as better indicators of the 7!S! stock market! What is the Dow Jones? Before " 'o over the Dow Jones history. the 9C56s was a terrible decade as the Dow Jones industrial avera'e was cut in half from the be'innin' to the end of . "B# and 5# are amon' the hi'hest priced stocks in the avera'e and therefore have the 'reatest influence on it! .t the time it only represented 9> stocks! @f those ori'inal 9> only one. Bank of . itOs important to know what the Dow Jones is! The Dow Jones is a stock market index! Currently it is calculated from the stock prices of 56 lar'e 7S companies! "t is actually a complex eMuation because of repeated stock splits! "t is not the sum of the prices of each of those 56 companies! What is the histor o! the Dow Jones? The Dow Jones history 'oes way back into the 9F66?s! The Dow Jones "ndustrial . a H9 move in the smallest component of the DJ".s of -ovember >696.lcoa are amon' the lowest priced stocks in the avera'e and have the least amount of sway in the price movement! #any critics of the DJ". recommend the float ad&usted market value wei'hted S&* =66 or the Wilshire =666.percenta'e chan'e! "n addition.

'rowth rate! That doesn?t include dividends which were where the Dow fell >>!E9D in one day! The overall increase from the be'innin' to end the Dow for the decade! But.666 and by >66K it was above 9G.s lon' as you put your money into the stock market for the lon' run you will be okay! Do not 'et too its lowest since 9CCK! By >66E the Dow was roarin' a'ain above 99. the Dow Jones dropped to E=66 in >66C What does the Dow Jones histor teach us? There will be ups and downs that will last for years! Do not panic when there is a protracted downfall! "t will rise a'ain even if it takes 96 to 9= years! .666s more than triplin' despite Black #onday on @ctober 9C.K=5! The C6s were even better for the Dow as it reached the 99. 9CFK.s can be expected after 'reat declines in the Dow Jones history. as we all know.666! its lowest since 9CCK! . that &ust set the Dow up for lar'e losses! By the end of the week after the September 99 attacks the Dow had fallen 9GD! The Dow eventually bottomed out in >66> at about K>66 But. soon came the 'reat increases in the 9CG6s and 9C=6s! The Dow went from about G6 in 9C5> to E9E in the 9C=6s! The Dow continued to increase into the 9CE6s and ended the 9CE6s at about F66! The enthusiasm took the Dow in the early 9CK6s above the 9666 mark! ThatOs a 'rowth of about >= times your money over G6 years or F!GD compounded annual about G =D! But the cycle continued with the sta'nant market of the 9CK6s! There was a bi' crash in 9CK5 and 9CKG where the Dow lost about half its value! Jor the whole decade the Dow only rose from F66 to F5F! The F6s saw lar'e 'ains in the Dow of the C6?s was F5F to >.the decade! .

if you?re investin' for you and your family?s future. doesn?t think he or anyone can predict the short term stock market movements. which sustained its 'rowth in the >6th Century and which 'uide its pro'ress as it pioneers new approaches to business and &ournalism in the di'ital a'e! #$$%&#'0% ( Founders and Foundation The foundation for success is laid by Charles Dow. $dward Jones and Charles Ber'stresser who over two decades conceive and commence three products which define Dow Jones and financial &ournalism0 The Wall Street Journal.excited when the Dow rises si'nificantly! "f you buy more than what you planned when the stock market peaks. Dow Jones -ewswires and the Dow Jones "ndustrial . you will re'ret it! +e'ardless of what the Dow is doin' continue on your investin' plan! Do not increase or decrease your holdin's or investment rate based upon the recent movements of the market! Don?t think you can predict what the market will do based upon current world conditions or history! -o one knows what the market will do in the short term and anyone who tells you they do is either lyin' or i'norant! "f the best investor in the world.nd you mi'ht even be ri'ht from time to time! But.vera'e! The founders state their . the vision at Dow Jones & Company has been consistent and definin' for more than a century! $xcellence. Warren Buffett. then what are the chances you can tooP Don?t try to time the market because you will lose more often than not! "t?s excitin' to think that you mi'ht actually pick what will happen! . inte'rity and innovation are the Mualities which started the company in 9FF>. then the borin' investin' decisions will be the ri'ht ones! "istor o! the Dow Jones Industrial Average Jrom a niche news a'ency in an obscure Wall Street basement to a 'lobal news and business information leader.

adds a mornin' edition! 9FCC The JournalOs Q+eview & @utlookR column. now six pa'es.n afternoon newspaper.vera'e is officially launched! 9FCK The Ticker.commitment to excellence in the JournalOs first issue0 QWe appreciate the confidence reposed in our work! We mean to make it better!R 9FF> Dow.fternoon . the real time newswire and the fundamental source for news in the investment community. Clarence . appears for the first time! "t initially was written by Charles Dow! #'0% ( #')# ( *ro!essionals and *rogress Dow Jones is acMuired in 9C6> by the leadin' financial &ournalist of the day. it covers four pa'es and sells for two cents! 9FCE The Dow Jones "ndustrial . is announced! 9FCF The Journal. Jones & CompanyOs first product is brief news bulletins hand delivered throu'hout the day to traders at the stock exchan'e! Those QflimsiesR as they are called later are a''re'ated in a printed daily summary called the QCustomerOs .etter!R 9FFC The first edition of The Wall Street Journal is published July F! . which still runs in the Journal today.

mericaOs premier financial weekly. . that column was the first ma&or summary of the . Barron recruits and develops a 'eneration of &ournalists who further Dow JonesOs reputation for excellence! Those &ournalists would lead the company successfully throu'h the %reat Depression and into a new era of prosperity and pro'ress! 9C>9 BarronOs.Barron! @ver the next 56 years.fternoon edition of the Journal ceases! Chief $xecutive @fficer Casey (o'ate be'ins a series of chan'es durin' the next decade that ultimately result in the metamorphosis of the Journal into a new kind of daily newspaper! @ne of these chan'es is advent of the QWhatOs -ewsR column! Created by Bernard QBarneyR . motor driven version of the QTickerR L a key innovation in the delivery of real time news L was developed by the Dow Jones en'ineerin' department! 9C>C The first issue of the *acific Coast $dition of the Journal rolls off the presses on @ct! >9.il'ore. Jones & Company! 9C5G . is foundedN its first editor is Clarence Barron! 9C>E . ei'ht days before the 'reat stock market crash! 9C56 Dow Jones is incorporated in -ew )ork! "t is now known as Dow Jones & Company after the comma is dropped from the former Dow.

the Journal would harness new technolo'ies such as microwaves to open new markets to readers in distant cities! 9CGK The Journal wins its first *ulitIer *riIe for editorials by William (enry %rimes! 9CGF The Journal launches a Southwest edition 9C=6 The Journal launches a #idwest edition 9C=5 When the -ew )ork Stock $xchan'e cancels its Saturday tradin' session.news. Dow Jones is able to reproduce newspaper pa'es by facsimile over lon' distances L a vital step toward a truly national newspaper 9CEE -ow with re'ional editions spannin' the 7!S!.s /enius Barney . Dow Jones isnOt satisfied reportin' Qwhat happenedRN our publications redefine &ournalism to include Qwhat it means!R "n business. ( -he Journal.il'ore takes over as mana'in' editor of the Journal in 9CG9 and as C$@ of Dow Jones in 9CG=. the Journal counts more than one million subscribers for the first time! . a precursor to omnipresent summaries and di'ests on the "nternet today! #')#&#'+. settin' the company on a new and revolutionary course! "n print. the Journal ceases publication of a Saturday edition 9CE> #akin' innovative use of microwave technolo'y.

( Innovation and /lo0ali1ation "nnovation would define Dow Jones in the G6 years after . .#'+.sia.frica! 9CK6 Dow Jones buys the @ttaway newspaper chain.ustralia and . &oint venture with Bunker +amo is the advent of electronic delivery of news from Dow Jones -ewswires in an a'e before personal computers! "t would also mark the companyOs pioneerin' efforts to store news and information electronically. -ewswires and Dow Jones "ndexes built successful franchises in $urope and . .atin .sia! 9CEK Dow Jones -ewswires be'ins a ma&or expansion outside the 7!S! that ultimately puts &ournalists in every ma&or financial center in $urope. which at the time comprised nine dailies and three Sunday newspapers! 9CK9 . Dow Jones was storin' and codin' its news di'itally so that it could be accessed online! JactivaOs content and technolo'y tools set the standard for innovation and Muality in the news and information industry! The Journal.sian Wall Street Journal is launched! 9CF5 The Wall Street Journal $urope is .il'oreOs death in 9CEK as the news moved into space and online! Dow Jones pioneered the use of satellites to transmit newspaper pa'es and make possible a daily newspaper on truly national scale! .(%00. decade before the "nternet. . a business that would evolve into Jactiva! 9CKE The .merica.

the worldOs most 'lobal media company! . and 0e ond ( 2omething 3igger -ews Corp! acMuires Dow Jones in December >66K. addin' a key component to what will become the Wall Street Journal Di'ital -etwork The Journal resumes publication on Saturday with the debut of Weekend $dition! >66E Jactiva is acMuired. and the horiIons expand a'ain! .es (inton takes over as chief executive! +obert Thomson becomes editor in chief and later mana'in' editor of the Journal! %00.vera'e is licensed for the first time. extendin' the suite of business to business products in what later will become the Dow Jones $nterprise #edia %roup! >66K Dow Jones is acMuired by -ews Corp!. settin' in motion a successful new business called Dow Jones "ndexes! >66= #arketWatch is acMuired.launched! 9CC= The initial version of the WSJ!com appears online! Content wonOt be all that distin'uishes the Journal on the Web! Dow Jones insists that its differentiated content is worth payin' for and thus built the "nternetOs most successful paid news Web site! 9CCK The Dow Jones "ndustrial .

sia! . the JournalOs 'lossy lifestyle ma'aIine debuts world wide! >66C @ttaway -ewspapers "nc! is renamed the Dow Jones .t a time when other media companies are retrenchin'.mericas it &oins its sister companies at -ews Corp! under one roof! Dow Jones Sustainability Index . culture and sports! .udiences expand! "n addition to 'rowth in paid circulation at the Journal. Dutch and .venue of the .ondon to Sydney.rabic! -ewswires also expands si'nificantly in "ndia! Dow Jones "ndexes launches the %lobal Dow.).ocal #edia %roup! The company moves its headMuarters to midtown #anhattan where at 9>99 . S. there are new local lan'ua'e products from -ewswires in Spanish. Dow Jones reinvents the Journal for a new era of news! -ow the Journal covers more political and 'eneral news alon' with its leadin' business covera'e! Jresh investment delivers new 'ame chan'in' business intelli'ence tools as well as new markets in $urope and .vera'e a''re'atin' 9=6 blue chip stocks from around the world! WSJ!. Dow Jones is movin' a''ressively to build on the success of the past and to capture the opportunity of the future! >66F The Journal is reconceived as a more complete source of news with expanded covera'e of national and international events as well as more opinion. a 'lobal version of the Dow Jones "ndustrial . (arperCollins and newspapers from .-ow part of a 'lobal media company which includes Jox.

are a family of indexes evaluatin' the sustainability performance of the lar'est >. indexes coverin' additional exclusion criteria and indexes denominated in different currencies! To be incorporated in the Dow Jones Sustainability "ndex. brandin'. supply chain standards and labor practices! The trend is to re&ect companies that do not operate in a sustainable and ethical manner! "t includes 'eneral as well as industry specific sustainability criteria for each of the =K sectors defined accordin' to the "ndustry Classification Benchmark 3"CB4! The DJS" family contains one main 'lobal index. companies are assessed and selected based on their lon' term economic.sia *acific! The DJS" also contains industry specific indexes called Qblue chip indexes!R "n addition. the DJS" methodolo'y facilitates the desi'n. climate chan'e miti'ation. indexes coverin' different se'ments of the leadin' sustainability companies. and various indexes based on 'eo'raphic re'ions such as0 $urope.=66 companies Jones! They are the lon'est runnin' 'lobal sustainability benchmarks worldwide and have become the key reference point in sustainability investin' for investors and companies alike! The DJS" is mana'ed cooperatively by Dow Jones "ndexes and Sustainable . -ordic. the DJS" World.merica and . environmental and social performance.The Dow Jones 2ustaina0ilit listed on the Dow Inde4es 3DJS"4 launched in 9CCC. social and environmental asset mana'ement plans! Selection criteria evolve each year and companies must continue to make improvements to their lon' term sustainability plans in order to remain on the "ndex! "ndexes are updated yearly and companies are monitored throu'hout the year! "istor . development and delivery of customiIed sustainability indexesN e!'! indexes coverin' different re'ions. risk mana'ement.sset #ana'ement! The DJS" is based on an analysis of corporate economic. assessin' issues such as corporate 'overnance. -orth .

# and the Dow Jones "ndexes! S. while S. has been terminated!R o >6960 S. marketin' and distribution of the indexes includin' the $uropean "ndexes.# 8will: remain responsible for the component o selections! .s a result. S.# and Dow Jones "ndexes .td!. another indexin' company! The o Dow Jones ST@AA Sustainability "ndex is introduced and marketed towards $urope‟s sustainability leaders! >66=0 Dow Jones Sustainability -orth .# is a 'lobal investment company focused exclusively on Sustainability "nvestin'! The "ndexes are created to track financial success of leadin' sustainability companies! The top 96 percent of the lar'est >=66 companies listed on Dow Jones are included! o >6690 The DJS" is expanded to include ST@AA .aunch Dow Jones "slamic #arket Sustainability o "ndex that combines "slamic investin' principles and sustainability criteria from the DJS"! o >6960 S.#‟s collaboration with ST@AA .o 9CCC0 The Dow Jones Sustainability "ndexes are launched in September! "t is o collaboration with S.td!. which had previously calculated the $uropean ST@AA Sustainability "ndexes.merica "ndex is created! o >66E0 Dow Jones "ndexes and S.aunch DJS" -ordic "ndex Inde4es .# .# and Dow Jones "ndexes terminate collaboration with ST@AA! QDow Jones o "ndexes will be responsible for calculation.

excludin' the world index! CustomiIed indexes are continuously bein' developed and delivered to encompass different re'ions or individualiIed sections of companies to add additional exclusions when needed and to chan'e the currencies they are denoted in! The Dow Jones Sustainability "ndexes have been divided into various benchmarks includin' the World. 'amblin'."ndexes are denominated in both 7S dollars and $uros and are calculated usin' the . .aspeyres formula! . with the DJS" World ex 7S F6 excludin' the 7S from the top F6! The DJS" World and its subset are all reviewed on an annual basis! DJ2I 5urope and 5uro1one Inde4 The Dow Jones Sustainability $urope "ndex covers the leadin' >6D of the lar'est E66 $uropean companies in terms of sustainability from the DJ%TS#"! "t is subset by three . or DJS" World.sia *acific. -ordic. -orth .orean indexes! DJ2I World Inde4 The World "ndex. tobacco. environmental. was first published on September 9CCC! "t is based on the lar'est >=66 companies in the Dow Jones %lobal Total Stock #arket "ndex 3DJ%TS#"4! "t covers the top 96D of these companies in terms of economic. and social criteria which eMuals about 566 companies! The DJS" World has two subset indexes. which are the Dow Jones Sustainability "ndex World F6 3DJS" World F64 and the Dow Jones Sustainability "ndex World ex 7S F6 3DJS" World ex 7S F64! Both subsets were initially published in .ll "ndexes that are not subsets exclude companies that 'enerate revenue from alcohol. armaments and firearms. and .merica. and adult entertainment! "ndex components are based on free float market capitaliIation and most main indexes are reviewed Muarterly. $urope.u'ust >66F and track the performance of the lar'est F6 companies 'lobally in terms of sustainability.

the main subset bein' the Dow Jones Sustainability $uroIone "ndex 3DJS" $uroIone4! This index tracks the financial performance of sustainability leaders in the smaller euroIone re'ion! Both indexes were launched in . both of which were also launched in .u'ust >696 and have their own further subset! The two subsets are the Dow Jones Sustainability $urope G6 "ndex 3DJS" $urope G64 and the Dow Jones Sustainability $uroIone G6 "ndex 3DJS" $uroIone G64.u'ust >696! These track the top G6 sustainability leaders in $urope and the smaller $uroIone re'ion! DJS" $urope and $uroIone are reviewed annually as well as Muarterly to maintain accuracy of the index composition while the DJS" $urope G6 and DJS" $uroIone G6 are reviewed only annually! .different more specific indexes for the re'ion.

the subset. respectively! Both subsets.orea4 was launched in @ctober >66C.sian *acific "ndex 3DJS" .orea "ndex is derived from the smallest pool of companies. the DJS" .orea >6 "ndex 3DJS" .sia *acific included 9>> companies and captures the leadin' >6D of the top E66 companies in developed .merican "ndex has a similar desi'n as the DJS" $urope and also reviews the top >6D of the E66 lar'est companies. three years after the DJS" -orth . however. in January >66C! . G9 companies were included in the DJS" .sia *acific G6.merica! "t was ori'inally launched.sia *acific G6 "ndex 3DJS" .merica G6 "ndex 3DJS" -orth . were not launched until .merica and The 7nited States.sia *acific G64.orea >64! .orea! DJS" .s of >66C.sia *acific #arkets in terms of sustainability as derived from the DJ%TS#"! DJS" .sia *acific re'ion! DJ2I 8orea Inde4 The Dow Jones Sustainability . trackin' the most sustainable 56D of the lar'est >66 . alon' with its subset Dow Jones Sustainability 7nited States "ndex 3DJS" 7nited States4.orea >6 encompasses the lar'est >6 sustainable leadin' companies in the re'ion! The index . the Dow Jones Sustainability . in September >66=! Both "ndexes are further broken down by the Dow Jones Sustainability -orth .u'ust >66F. alon' with its subset the Dow Jones Sustainability .s of this date.DJ2I 6orth America and 7nited 2tates Inde4 The Dow Jones Sustainability -orth .merica! DJ2I Asia *aci!ic Inde4 The Dow Jones Sustainability .orea "ndex 3DJS" . but in this case in -orth .sia *acific4 was launched at the same time as its sin'le subset.merica G64 and the Dow Jones Sustainability 7nited States G6 "ndex 3DJS" 7nited States G64. tracks the lar'est G6 companies who are sustainability leaders in the .orean companies! The Dow Jones Sustainability . which cover the leadin' G6 sustainability driven companies in -orth .

# Muestionnaire.encompasses a smaller re'ion than the other indexes resultin' in a hi'her percenta'e of companies analyIed and a lower number of companies that are reviewed in the subset! The DJS" .orea is also reviewed on an annual and Muarterly basis whereas the DJS" . and personal contact with the companies! "ndustry leaders from S. layoffs or worker .# +esearch‟s Corporate Sustainability . company transparency documentation.ssessment are chosen to be listed on the DJS"! @nce a company is listed on the DJS". and environmental opportunities of the companies that the DJS" has listed.orea >6 is reviewed annually! Assessment . which can lead to the exclusion of the company if deemed critical enou'h! $xamples of events that would lead to exclusion include0 commercial practices. #edia and Stakeholder +eports. which are chosen based on the Corporate Sustainability . social.ssessment by S. defined set of criteria is used to assess the economic. it is monitored daily for any critical arisin' issues.# +esearch! "nformation comes from the annual S. human ri'hts abuses.

the event will be analyIed further based on severity. or catastrophic disasters! These companies are monitored throu'h publicly accessible information includin' media and company contact! "f one of these critical events happens. media covera'e. takin' into account nine specific criteria in addition to industry specific criteria! Below are the criteria and wei'htin's S. and crisis mana'ement! S.ssessment:.# analysts decide from here whether the company will be excluded from the DJS"! . an increase of FD from >66F! . an independent expert study commissioned by 7-$* J" and presented at the World $conomic Jorum in Davos.# uses to assess a company ‟s overall score Criteria $conomic Dimension0 55D $nvironmental Dimension0 55D Social Dimension0 55D Weightings "ndustry Criteria0 =KD %eneral Criteria0 G5D .# assessment as Qthe most ri'orous in terms of the number of Muestions and depth of information reMuested/! "n >66C.# carried out its 99th consecutive 8Corporate Sustainability .t the onset of DJS"‟s assessment criteria. assessin' more than 9.disputes. S. the situation is analyIed for the scope in which it reaches! "f lar'e enou'h.>66 companies.n assurance report is completed by Deloitte to ensure the validity of the company‟s information! "n early >66C.# mainly focused on 'overnment compliance and re'ulations! "t has evolved to embrace Corporate Sustainability as a key competitive advanta'e. S. hi'hli'hted the S.

-ote that these wei'htin's are approximations.ttraction +etention .nti Corruption & Bribery E!6 "ndustry Specific Depends on "ndustry Criteria 5nvironmental *ercentages $nvironmental +eportin' "ndustry Criteria 2ocial dimension (uman Capital & Weightings *ercentages =!= =!= in Specific dimension 5!6 Depends on "ndustry Weightings in Development Talent . and actual wei'htin's may differ between industries! .abor *ractice "ndicators =!6 Corporate CitiIenship 1 *hilanthropy 5!6 Social +eportin' 5!6 "ndustry Specific Criteria Depends on "ndustry . Breakdown of these Dimensions is seen below 5conomic dimension Corporate Weightings percentage E!6 in %overnance +isk and Crisis #ana'ement E!6 Codes of Conduct1Compliance1.

#‟s Corporate Sustainability .5C5  Companies completin' Muestionnaire S ECF  Companies analyIed based exclusively on public information S EC= Some of the assessment criteria have varied sli'htly from year to year to reflect 'rowin' information about particular issues such as water related risks. number of Muestions to companies.ssessment has increased in number of assessed companies.vera'e Total sustainability score 3out of F E F = 6 > 5K =F 96 6 GF .-umber of invited companies in >6960 895:  Total -umber "nvited Companies S >.=66  DJS" $urope 7niverse S E66  DJS" -orth .orea S >66  Companies analyIed 'lobally S 9.# to provide both relevant and current information! Since 9CCC.merica 7niverse S E66  DJS" .> E -umber of Sectors -umber of Muestions to companies . corporate citiIenship. brand mana'ement.sia *acific S E66  DJS" .E9K  DJS" World 7niverse S >. S. risk and crisis mana'ement! Continuous improvement allows for S. and wei'ht of sector specific criteria in percenta'e total wei'ht! 89G: #''' -umber of assessed Companies %00' G 9. avera'e totally sustainability score. number of sectors.

each company can be awarded one or a combination of the followin' status0! 89E:  2ector 9eader: "n each sector.over: Sector #over is awarded to the company that achieved the bi''est proportional improvement in its Sustainability performance compared with last year! . industry specific information accounted for only 56D of the overall score. while now it accounts for nearly E6D! Jrom these Muestionnaires.# Muestionnaire are more difficult to measure intan'ible business attributes such as innovation and customer relationship mana'ement! <uestions are both directed at short term risks and opportunities and sustainable lon' term value creation! 89=: The intensity of the industry specific criteria has continuously increased! "n 9CCC.# Sector .# Sector .eader is identified as the company best prepared to seiIe the opportunities and mana'e the risks derivin' from economic. environmental and social developments! The S.eader is the company with the best score of all companies assessed in this sector!  2ector . the S.9664 K Wei'ht of sector specific criteria 3in D of total wei'ht4 56 =K "ncluded in the most recent S.

eader are also awarded! S.eader are also awarded S.# Sector .# Silver Class. /old Class: To Mualify for the S. the S.eader must achieve a minimum total score of K=D! *eer 'roup companies whose total score is within =D of the S.# Sector .# DJ2I 5uro1one Inde4 <#'= 9 . 2A. 2ilver Class: To Mualify for the S.didas %ermany ! > B#W . score up to 96D lower than the leader results in S.# Silver Class.eader are also awarded S.# Sector .# BronIe Class! Companies listed The followin' lists are &ust a few of the more reco'niIable companies listed on the Dow Jones Sustainability "ndexes! "t is not a complete list.bertis ! "nfraestructuras S!.# %old Class..# %old Class! .ir Jrance .eader must achieve a total score in the ran'e of E= K6D! *eer 'roup companies whose total score is within 96D 9=D of the S.# Silver Class. while a score of 96D lower than the leader results in S.= 9 . the S.% %ermany .# BronIe Class!  2am 3ron1e Class: To Mualify for the S. this list is for the >696 >699 year and updated as of @ctober >696! DJ2I World Inde4 <#.% %ermany ! 5 Coca Cola Co L DJ2I 5urope Inde4 <#$= 9 ! > ! Jrance . a score up to 9=D lower than the leader results in S.# Sector . the S. however.eader must achieve a total score in the ran'e of K6 K=D! *eer 'roup companies whose total score is within =D 96D of the S.# BronIe Class!  2A.# Sector .# Sector .didas .# BronIe Class.! L Spain ! 7nited .

! ! L Jrance E $nel S!p!.td! L South .% +udolf > ! Dassler Sport L 6 SwitIerland Siemens %ermany .! L 9 #cDonald‟s Corp! L 6 ! 7nited States 9 ! 9 9 ! -estle S!.rcelor#ittal ! Jrance G B#W .% ! %ermany 5 .T@rUal S!.straIeneca *.% L %ermany Vuitton L 9 .% %ermany Coca Cola (ellenic Bottlin' Co! S!.! L "taly ! K Jinmeccanica ! S!p!.ouis Jrance #oet .! ! Jrance = (alliburton Co! L ! 7nited States E (ewlett *ackard Co! ! L 7nited States K (yundai $n'ineerin' ! & Construction Co! .States G Christian Dior S!.C L 7nited .DS Jrance F ! .orea F "ntel Corp! L 7nited ! States 5 ! .% L G ! = ! B#W .! L Jrance F Jortum ! Jinland C "ndra ! S!.didas .! L %reece ! %ermany = Christian Dior S!.V#( C (ennessy .in'dom > .! L "taly @y& L E ! Deutsche Bank .! L ! 9 *uma .! L Spain Sistemas 9 "nfineon 6 Technolo'ies ! C #itsubishi Corp! L ! Japan ! .e%rand 9 Jrance S!.% %ermany K $uropean .eronautic ! Defence & Space Co! $.

% -on Vt' *fd! L %ermany %ermany 9 SueI G $nvironement ! .% L 5 ! 95! Volkswa'en .% %ermany 9 Jinland ! 9 *anasonic Corp! L > ! Japan 9 +olls +oyce %roup 5 ! %ermany 9 Siemens .rupp .9 -okia Corp! 9 > ! Thyssen.

S!.orea 9=! Siemens .in'dom 9 Samsun' $lectronics G ! Co! .in'dom .C L S t a . 5 20. Toshiba Corp! L Japan 2. B a t e C o r p ! a n k o f # o n t r e a l L C a n a d t e s 7nited .in'dom 19.! L Jrance *. 7nilever 7nited . l l s t 3.B Volvo Sweden 1.% L %ermany s DJ2I 6ort h Ame rican I n d 18.C L 7nited 9G! .td L South Sweden 9=! Wolters . .rupp .td # C o! L 7 ni te d S ta te 7 n i t e d L e 4 <% 0= . .B Volvo L 15. .ustralia Woodside *etroleum .% %ermany 9 Starbucks Corp! L E ! 7nited States 17. Thyssen.luwer -!V! L -etherlands 9E! Astrata *.

#acy‟s "nc! 7nited States 13. Cater pillar "nc! L 7nite d State s 7nited States 9. u s t r J a p a n . t d ! L . #icros oft Corp! L 7nited States L . . o n ' o r p ! L 4 <%#= 2. . * ( o l d i n ' s . L Cana DJ2I Asia *aci! ic Inde a l i a 3. %ap "nc! L 7nited States 10. 15. Dell "nc! L 7nited States 8. -ation al Bank of Cana da da 1.inross L 14. Campbell Soup Co! L 7nited States 5. B r i d ' e s t o n e 6. t d C ! L ( o n ' . C . ( & + Block "nc! 7nited States 11.a 4. Jord #otor Co! L %old Corp! Canada 12. *rocter %amble Co! L 7nited $ n e r L ' y States & % . Cono co*hil lips L 7nite d State s 7.

td! South .orea 5.td! Japan 7. si a n a . . Daewoo Securitie s . irl in e s "n c! L S o ut h .td! South .orea 8.ustralia & Co! L Constructi 12.td! South . . D . *anasonic Corp! Japan L L L 11. "nsuranc e .td! Japan 13. -issan #otor Co! . t d ! L S o u t h L DJ2 I 8or ean Inde 4 <%%= 2. Ju&ifilm (oldin' s .td! L Sin'a pore L 14.%roup .td! 4.orea 15. (yundai $n'ineeri n' on . #itsubi shi #ateria ls Corp! L Japan Co! L 10. o r e a a e w o o S h i p b u il d i n ' & # a ri n e $ n ' i n e e ri 3. 7nited #icroelect ronics Corp! Taiwan L Co! L 9.ustralia .% $lectron ics "nc! L South . o r e a . 1.and .orea s i a C e m e n t C o ! . Samsu n' $lectro #echan ics Co! . . .eppe l .td Japan 6. (itachi .

orea 4.orea 13. (yunda i Steel L Co! South . .B Jinancial %roup South . Woon'&in Co! L 11. S.orea 14.orea $lectric *ower L Corp! South .td! South .orea 5. 8.ia #otors Corp! L South .td! L South .orea 6.orea 12.orea 7.td! South . Taihan $lectric Wire .td! L South . S @il Corp! L South .n' Co! L South .orea L South . .orea 10.orea 9. -on'shi m .orea L Co! L $ner'y Co! . @C" Co! . #irae .td! L Chemical Co! .td! South .sset Securities Co! . .orea 15. Samsun' $lectronics Co! .

Dow Jones Sustainability . and contact with companies! . S. the credibility of the information may be Muestioned.orea >eviews The -ovember >696 DJS" +eview includes a review of0 key facts 3showcasin' recent news and 'rowth in asset mana'ement4. media and stakeholder analysis.# removed B* from the DJS" thereby startin' a 'lobal debate re'ardin' the value of ratin' a'encies in assessin' a companyOs corporate sustainability! "t has been noted that because the DJS" mainly relies on data provided by the companies themselves.d&ustments to Sustainability "ndex >696! $ach index on the review includes an "ndex +an'e. Dow Jones Sustainability -orth . Dow Jones Sustainability $urope "ndex.ll chan'es will take effect at the close of tradin' on December Criticism "n .orea "ndex. >696 assessment.td! L South . percent of market cap covera'e4. an explosion on B* ‟s Deepwater (oriIon oil drillin' ri' in the %ulf of #exico exploded.. the number of companies added and deleted from the DJS".# uses four sources of information to assess corporate sustainability0 company Muestionnaire. Dow Jones %lobal Stock #arket "ndex. Selection of companies 3percent of companies per sector. and component selection 3based on industry4! . 'iven the self interest of the companies to disclose favourable data! S. company documentation. and . Dow Jones Sustainability World "ndex. Dow Jones Sustainability .sia *acific "ndex.merica "ndex.pril of >696. killin' 99 crew members and in&urin' doIens more! Jorty days later.

#?s Muestionnaires and information reMuests rather than those with the best socially responsible practices! Secondly.n index based on biased information often underestimates real risk factors in the listed companies? operation. bein' biased towards economic criteria to the disadvanta'e of social and environmental ones! .s a conseMuence of these limitations. even in those instances when submitted information if verified by an auditin' firm such as *ricewaterhouse Coopers! 7ltimately.7sin' self reported data as proxies for the social or environmental effects DJS" intends to reflect leaves the index exposed to corporate biases and additional credibility risks! it rewards companies with 'reatest capacity to respond to S. further bias of the DJS" is that it only includes lar'e companies. whereas other indices include smaller companies as well! . companies with challen'in' corporate environmental and social issues are more likely to devote public relations resources to minimiIe the perception of risk within their operations! "t has been also found that in the DJS" the three dimensions of sustainability are not considered in a balanced way. relyin' on self reported data carries substantial risks since information from companies may not be completely credible! . a survey conducted amon' sustainability experts found that only GFD considered the DJS" as /hi'hly trusted/! .