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In 2005 we set out to improve in the key indices of social responsibility. Here are some highlights:
Pearson again improved the company score in the Dow Jones Sustainability Indices in 2005. We were included in both the DJSI Global Index and the DJSI STOXX Sustainability Index of European Companies.
The DJSI Global Index consists of more than 300 companies - representing the top 10% of the largest 2,500 companies in the Dow Jones Global Indexes - based on an assessment against a series of sustainability criteria. The DJSI STOXX Sustainability index tracks the financial performance of the top 20% of European companies drawn from the largest 600 companies in the Euro STOXX index.
In June 2001, FTSE - a joint venture half owned by Pearson and half owned by the London Stock Exchange - introduced the first of a series of 'socially responsible indices' alongside its other financial products. The FTSE4Good Index series is designed for use by retail SRI fund products and for fulfilling institutional mandates. All licensing revenues from FTSE4Good indices are donated to UNICEF.
FTSE4Good excludes certain industries including tobacco and armaments. Companies must pass the FTSE4Good selection criteria relating to environmental sustainability, relationships with stakeholders and upholding and supporting human rights. An independent advisory committee sets the selection criteria. Membership is subject to a bi-annual review. Pearson has been included within the FTSE4Good indices since inception.
Business in the Community (BITC) introduced the Corporate Responsibility Index in 2002. The index is a voluntary self-complete survey which benchmarks corporate responsibility performance. In 2004, Pearson rose in the rankings of the top 100 'Companies that Count' with the company score rising from 58% in 2002 to 84% in 2004. Results for 2005 will be released in May 2006.
Pearson has been included for the second year in a ranking of the most Sustainable Corporations in the World, released at the World Economic Forum in Davos in January 2006. The ranking was produced by Innovest Strategic Value Advisors, together with a Toronto-based CSR publisher, Corporate Knights. The Global 100 were selected on the basis of performance and strategic ability to manage their triple bottom line: society, environment, and economy.
Vigeo is a corporate social responsibility (CSR) ratings agency based in France, offering company CSR profiles both to the corporate market as well as to investors. Ratings are based on an analysis of publicly available data together with a company interview. Vigeo scores company performance on human resources management, the environment, customers and suppliers, corporate governance, community involvement and human rights. Pearson achieved sector-leading scores for its management of the environment and human rights.
Pearson was named one of the top ten best companies in the UK's Business In The Community Race for Opportunity 2005 rankings. Named 'most improved performer' the previous year, Pearson gained particularly high marks in the areas of leadership and marketing in 2005. The annual ranking aims to benchmark company performance and progress in the race arena, across a variety of criteria including employment, engaging ethnic minority businesses, marketing and inclusive community involvement programmes.