Toyota, a new entrant to the Dow Jones Sustainability World Index, was last month judged best in class in its sector at the third annual index review.
The Japanese car firm, which last year failed to make it into the index, has significantly improved its ‘sustainability performance’ , according to the compilers.
They cited work on hybrid fuel cells as among reasons for the company’s inclusion, while noting that it was not systematically addressing social issues.
Toyota is one of 51 companies to have been added to the index. Others include: AMP (banking), Anglo American (mining), National Grid Transco (energy), Gap (clothing) and HJ Heinz (food).
Among 42 companies dropped from the index were Bank of America and Telecom Italia.
After its annual review, DJSI adds to the index universe those companies deemed to have strong sustainability performance, and deletes companies that lag in sustainability practice.
In the annual review of the FTSE4Good index also carried out last month, 21 more firms have joined the UK index. Eighty-five of the FTSE100 are now in the index. FTSE100 companies Johnson Matthey and Tomkins are new entrants, as are 11 of the FTSE250 and seven small-cap companies – a record number of additions from the FTSE250 and SmallCap indices.
Carphone Warehouse has been deleted for failing to meet revised environmental criteria, while Cairn Energy has been removed for not meeting tighter human rights criteria. Worldwide more than 70 companies were added to the FTSE4Good series and 25 deleted.