un global compact index
MILWAUKEE Oct. 10, 2013 - Johnson Controls, a global diversified company in the building and automotive industries, today announced that it has been selected for inclusion in the United Nations Global Compact 100 – a new global stock index that combines corporate sustainability and baseline financial performance.
“We are proud of our inclusion on this prestigious index,” said Iain Campbell, vice president, energy, sustainability and government affairs for Johnson Controls. “Our commitment to sustainability, both environmental and social, across our global business complements our strong financial performance and helps us remain an attractive investment for our shareholders.”
During the past 12 months the “GC 100” shows a total investment return of 26.4 percent, surpassing the general global stock market.
Developed and released by the UN Global Compact in partnership with research firm Sustainalytics, the GC 100 is composed of a representative group of Global Compact companies selected based on their adherence to the Global Compact’s ten principles as well as evidence of executive leadership commitment and consistent baseline profitability.
The GC 100 tracked the stock market performance of these companies during the past three years, comparing the results against a broad market benchmark, the FTSE® All World. The data for total returns is as follows:
- GC 100 rose 26.4 percent during past 1 year; FTSE® All World rose 22 percent
- GC 100 rose 19 percent during past 2 years; FTSE® All World rose 17.7 percent
- GC 100 rose 12 percent during past 3 years; FTSE® All World rose 12 percent
“While the performance of the GC 100 should not be seen as clear evidence of a causal relationship between a commitment to corporate sustainability practices and stock performance, there appears to be an exciting correlation,” said Georg Kell, executive director the UN Global Compact. “Moreover, the results may also reflect the fact that sustainability performance is a factor that is receiving increasing interest from investors.”
The GC 100 marries corporate performance on environmental and social issues with a requirement of basic profitability. Kell added, “Sustainability performance should not be looked at in isolation so we included a requirement of basic financial good health. Both factors are often taken as proxies for the quality of management, which can be an important determinant of investment returns.”