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BP Removed from Dow Jones Sustainability Indexes

Socially responsible investors send a clear message to BP: the oil-spill catastrophe in the Gulf of Mexico is not okay.

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.

Follow Cindy Tickle on Twitter @ethicalbiz
Image Credit: Tom Raftery via flickr under a CC license

Written by Cindy Hoots

With more than 10 years experience working for a major Fortune 500 company, Cindy specializes in socially and environmentally responsible business strategies. She has developed successful corporate communications and stakeholder engagement strategies on contentious sustainability issues and has worked with a number of NGOs and activist organizations on how to effectively partner with multinational companies. Cindy frequently writes about topics ranging from what is corporate social responsibility to sustainable supply chain and measuring a company's environmental impact. She believes business plays a vital role in the health of our communities and our planet.

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  1. The real question is how did they even get listed there in the first place? Sounds like the index is like those bogus seals of approval – pay enough and its yours.

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