Dofasco Among World's Most Sustainable Companies
|Dofasco Inc. |
P.O. Box 2460, Hamilton, Ontario L8N 3J5
Telephone (905) 544-3761 Fax (905) 548-4935
|Release Date:||March 28, 2000|
|Information Contact:||John Mayberry (905) 548-7200 ext. 3262 |
Gordon Forstner (905) 548-7200 ext 2200
Hamilton, Ontario: Dofasco Inc. has been named one of the world’s most sustainable companies by the Dow Jones Sustainability Group Index (DJSGI) based on financial, social and environmental performance and management approaches.
The company was named the Market Sector Leader in the Basic Materials Sector of the index. Industries included in the Basic Materials Sector include steel, aluminum, precious metals, other non-ferrous metals, mining (diversified), chemicals, forest products and paper products. Dofasco is the only Canadian company ranked as a sector leader. This is the second consecutive year Dofasco has been listed on the DJSGI Index.
“We are honoured to receive this recognition,” said John Mayberry, President and CEO of Dofasco Inc. “We are committed to the pursuit of the principles of sustainability, which at Dofasco involves a focus on the triple bottom line of environmental responsibility, commitment to community and financial performance. We believe this produces sustained shareholder value, as well as creating value for our customers, our communities and our employees.”
The DJSGI’s Biographies of Corporate Sustainability Leaders says, “Dofasco strives to successfully outperform the triple bottom line: environmental responsibility, social well-being and financial performance… (the company) takes an active role in building a healthy, prosperous place to live, work and interact.”
“One example of Dofasco’s pursuit of sustainability is the company’s participation in the Ultra Light Steel Auto Body (ULSAB) project,” said Mayberry. “The ULSAB project began with an environmental imperative to reduce fuel consumption in North American vehicles through lightweighting. Several steel technologies emerged that addressed our customers’ value chains. Dofasco made the requisite investments to move these technologies into production and our commercial markets, creating shareholder value, as well as capital investment and employment in our community.”
In 2000, Dofasco also became a Founding Sponsor of the Sustainable Enterprise Academy (SEA) at the Schulich School of Business at York University. The SEA’s mission is to provide senior executives with the vision, education, tools and support to champion sustainable development in their organizations.
“Dofasco has taken a leadership position in the area of corporate sustainability,” said Brian Kelly, Director of the SEA. “The company is to be commended for their participation in the establishment of the Sustainable Enterprise Academy. The recognition from the Dow Jones Global Sustainability Index is evidence of their commitment to sustainability.”
“The superior performance of companies integrating corporate sustainability in their business strategies is evidenced by some key financial parameters,” said John Prestbo, Chief Editor, Dow Jones Indexes. “In the first half of 2000, the average ROE of companies in the DJSGI World Index averaged 14.89% against 8.43% for those on the DJGI Index. Likewise for the average ROI (DJSGI: 11.09% vs. DJGI: 7.37%) and average ROA (DJSGI: 5.81% vs. DJGI: 3.63%).”
He noted this result is in line with the trend over the past five years, when the DJSGI index’s results were superior to the DJGI index’s (DJSGI ROE: 14.73% vs. DJGI ROE: 9.87%; DJSGI ROI: 8.86% vs. DJGI ROI: 6.97%; DJSGI ROA: 5.49% vs. DJGI ROA: 4.77%).
The DJSGI is the world’s first global sustainability index family tracking the performance of the leading sustainability-driven companies worldwide. Inclusion in the DJSGI is based on an annual assessment of the corporate sustainability performance of the largest 2,000 companies in the Dow Jones Indexes from 64 industry groups in 36 countries.
As of October 6, 2000, the DJGSI will include 236 companies from 61 industries in 27 countries, representing the top 10 per cent of sustainability companies worldwide. For more information on the DJSGI, visit the DJSGI website at www.sustainability-index.com.
“Since the launch of the DJSGI in September 1999, we have seen corporate sustainability move beyond concepts to commitment, beyond principles to pragmatism, and beyond ideas to implementation,” said David E. Moran, President, Dow Jones Indexes. “Investors are attracted to corporate sustainability because, as a business strategy, it creates long-term shareholder value by embracing opportunities and managing risks associated with economic, environmental and social developments.”
The DJSGI uses its DJSGI Corporate Sustainability Assessment to quantify a company’s performance by focussing on a company’s pursuit of sustainability. For example, this could include meeting market demand for sustainable products and services, or the reduction/avoidance of sustainability risks and costs. This assessment is in line with the five corporate sustainability principles – innovative technology, corporate governance, shareholder relations, industrial leadership and social well-being – that are focussed on the integration of economic, ecological and social factors into business strategies. For more detailed description of the assessment criterion, please refer to www.sam-group.com.
Dofasco is a leading North American steel producer. Product lines include hot rolled, cold rolled, galvanized, GalvalumeTM and tinplate flat rolled steels, as well as tubular products and laser welded blanks. Dofasco's wide range of steel products is sold to customers in the automotive, construction, steel distribution, packaging, pipe and tube, manufacturing and appliance industries.