Page 61 - Design for Environment A Guide to Sustainable Product Development

40 Chapter Thr ee

The certificate is valid for a period of three years, after which the
entire certification process must be repeated.

Sustainability Rating Schemes
One of the strongest external drivers influencing the adoption of
corporate sustainability has been the growing interest on the part
of the financial investment community. Portfolio analysts are in -
creasingly recognizing the importance of sustainability as a leading
indicator of future value. “Socially responsible” investing (SRI) has
grown rapidly, and now accounts for an estimated 10 to 15 percent
of the total assets under management in the U.S alone. There are a
variety of SRI funds that screen investments based on sustainabil-

ity criteria such as en vi ronmental risks and labor practices. In addi-
tion, many companies have been presented with shareholder reso-
lutions demanding greater attention to sustainability issues such
as climate change.
The United Nations Environment Program has established a
Finance Initiative (UNEP FI) that has become a powerful force in
promoting sustainability investing. This public-private partnership
between UNEP and over 180 global financial companies aims to
understand the impacts of environmental, social, and governance
considerations on financial performance and sustainable develop-
ment, and to promote the adoption of best practices. UNEP FI helped
to develop the Principles for Responsible Investment, which have
been adopted by over 400 institutional investors, representing more
than $15 trillion in assets under management.
In addition, to serve the needs of sustainability investors, a num-
ber of organizations have been developing scoring and ranking tools
that rate companies according to environmental, social, and eco-
nomic criteria. For example, the FTSE4Good Index analyzes environ-
mental and social responsibility activities, with the stated intent of
promoting a stronger business commitment. Other well-known
indexing and rating services include Ethibel and Innovest Strategic
Value Advisors. The companies that are rated highly by these in -
dexes have generally performed in line with or have outperformed
the broader market averages.
One of the most widely recognized rating schemes is the Dow
Jones Sustainability Indexes (DJSI) managed by Sustainable Asset
Management (SAM) Research in Switzerland. This consists of a col-
lection of indexes specifically designed to track the financial perfor-
mance of the leading sustainability-driven companies worldwide.
The intent is to provide asset managers with reliable and objective
benchmarks to manage sustainability portfolios. Each eligible com-
pany is rated according to a comprehensive set of criteria that
cover the “triple bottom line”—economic, environmental, and social