SAP Nokia and IBM Top The Green Company Index

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Nokia, IBM and SAP emerge as green leaders in the technology industry according to the Dow Jones Sustainability Index, while AMD, TCS and BEA lose out

The tenth annual Dow Jones Sustainability Indexes (DJSI) review published this week has named and shamed those technology winners and losers in the sustainability stakes.

The DJSI includes sustainability leaders across industries from a global and regional perspective and is based on an analysis of corporate economic, environmental and social performance.

In the technology and communications sectors, Nokia emerged top, while SAP was ranked highest among 34 software companies assessed from around the world, alongside IBM in the computer services sector.

Following its leading position at the top of the green IT rankings compiled by Greenpeace the DSJI rated Nokia highly in terms of its approach to the use of chemicals in its production processes. It also highlighted its take-back programs, greater modularity, and extended producer responsibility, stating: “Environmental and social standards for suppliers in areas such as the use of hazardous substances and working conditions are becoming increasingly important.”

In SAP’s case, the software firm improved in all three aspects over its 2008 rating and had sector-leading scores in 12 of the 20 key dimensions, including operational eco-efficiency (where it scored 100 per cent), brand management, human capital development, corporate citizenship and codes of conduct. The software vendor also received a 100 per cent rating for its environmental reporting, driven by its innovative and interactive online sustainability report.

In assessing issues such as corporate governance, risk management, branding, climate change mitigation, supply chain standards and labour practices, the DSJI accounts for general, as well as industry specific sustainability criteria, for each of 58 sectors defined according to the Industry Classification Benchmark (ICB).

But, out of those companies who didn’t make the grade and were deleted from the DSJI, AMD, BEA Systems, and Tata Consultancy Services (TCS) emerged as losers., while Hitachi and Samsung gained entry to the listing at their expense

And, although not strictly a technology company, the UK’s National Grid was among the biggest organisations to be deleted this year, along with Mitsubishi Estate and drinks company, SABMiller.