Dow Jones Sustainability Index

Eaton participates in the Dow Jones Sustainability Index (DJSI), one of the world’s leading indicators for corporate responsibility. The DJSI defines Corporate Sustainability as “a business approach that creates long-term shareholder value by embracing opportunities and managing risks deriving from economic, environmental and social developments.”

The DJSI is unique in that companies are “accepted” or “rejected” as members based on their scores, half of which are determined by a questionnaire, and half by a Dow Jones analysis of publicly accessible documents and databases. Each year, the DJSI uses the firm SAM Research AG to identify the world’s sustainability leaders. A major source of information is the SAM questionnaire which is completed by companies participating in the annual review. Further sources include company and third-party documents as well as personal contacts between the analysts and companies. Based on SAM Research's corporate sustainability assessment, companies are ranked within their industry group and selected for the various Sustainability Indices, but only if they are among the sustainability leaders in their field.

In 2010, Eaton was one of six companies on the DJSI list of sustainable leaders in the “Diversified Industrial” sector. The DJI Sustainability Yearbook contains sustainability insights into 58 sectors. The top performers in each sector qualify as “SAM Sector Leaders.”

  Corporate Governance   Climate Strategy
Critera:
Board structure size and structure
Responsibilities and Committees
Transparency
Corporate Governance policy
Board Effectiveness
Transparency of Senior Management
Remuneration
Critera:
Corporate targets to reduce direct GHG emission
                      Carbon intensity
                      Supply Chain
                      Customer services
 
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  Risk & Crisis Management   Labor Practice Indicators
Critera:
Responsibility Risk & Crisis Management
Risk Analysis
Definition of Risk
Risk Response Strategy
 
Critera:
Key Performance Indicators & Reporting for Diversity, Discrimination, Equal remuneration, Freedom of Association, Layoffs, and Grievance resolution, Public Commitment
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  Codes of Conduct/Compliance/ Corruption & Bribery   Product Stewardship
Critera:
Codes of Conduct: Systems/Procedures
Corruption and Bribery Policy: scope and business relationships
Breaches Codes of Conduct: Public reporting
Critera:
Environmental impact of product use and maintenance, manufacturing, raw materials, procured components, reduction of hazardous materials, recycle and re-use
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  Customer Relationship Management   Human Capital Development
Critera:
Brand management
Customer relationship management,
Supply Chain
Marketing practices
Critera:
Human resource skill mapping and developing process,
Human Capital performance indicators,
Personal and organizational learning and development
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  Innovation Management  Talent Attraction and Retention (needs upgrade with non-confidential information)
Critera:
R&D investments, average life-cycles, success rates, Key Performance Indicators for different innovation stages, evaluation process, environmental performance, products
Critera:
Performance appraisal process, Corporate Indicators for performance-related compensation, Communication of individual performance to upper management, Trend of employee satisfaction,
Additional benefits
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  Environmental Reporting
  Corporate Citizenship/Philanthropy
Critera:
Content, context and coverage of company's public environmental reporting
Critera:
Measuring the results of contributions
Philanthropy / Social Investment Volume
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  Environmental Policy/Management System   Standards for Suppliers
Critera:
Corporate environmental requirements or guidelines, frequency of reports, review process, databases, best practices
Critera:
Supply Chain Management Practices
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  Operational Eco-Efficiency   Occupational Health and Safety
Critera:
Key Performance Indicators (KPI) – Energy, Greenhouse Gas, Waste, Water targets
Critera:
Occupational Health & Safety, Healthy Living, Bioethics, etc.
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