Posted on: November 26, 2021, 01:00 a.m.
Last update on: November 26, 2021, 01: 24h.
Sands China (OTC: SCHYY), the Macau branch of Las Vegas Sands (NYSE: LVS), is now an eligible component of the Dow Jones Sustainability Asia Pacific Index.
This is rarefied air for Sands China because game companies are generally not included in sustainability ratings. In fact, the games company is the only integrated resort operator included in the Asia-Pacific benchmark and it is one of three consumer service companies in the gauge.
The Dow Jones Sustainability Asia / Pacific Index is designed to measure the performance of Asia-Pacific sustainability leaders identified by S&P Global through the Corporate Sustainability Assessment (CSA), ”according to the index provider . “It represents the 20% of the 600 largest companies in the developed Asia-Pacific region in the SP Global BMI based on long-term economic, environmental and social criteria. “
Sands China, the operator of five integrated hotel complexes in Macau, is one of 12 names listed in China or Hong Kong in the Dow Jones index.
Why is this important
Sands China, which has a place in the sustainability index, is relevant for a number of reasons, including fund managers who rely on this gauge to buy shares of the games company. Additionally, data confirms that investors are flocking to ESG funds.
ESG investing is an increasingly popular style among asset distributors. However, many of the equity benchmarks that adhere to ESG principles intentionally exclude specific sectors. These typically include adult entertainment, alcohol, civilian gun makers, tobacco, and, yes, casino games.
“Environmental, social and governance (ESG) exchange-traded funds (ETFs) and globally-listed exchange-traded products (ETPs) raised net inflows of US $ 11.25 billion in October, raising net inflows to date at $ 130.28 billion, which is much higher than the $ 54.91 billion raised so far last year, “according to ETFGI, an ETF-based research firm. in London.
The entry of Sands China in the Dow Jones Sustainability Asia Pacific index is relevant for another reason: funds that benchmark against this index must buy shares of Sands China.
Sands has been here before
News of the inclusion of Sands China in the Dow Jones Sustainability Asia Pacific Index comes almost a year to the day after Las Vegas Sands was added to the Dow Jones Sustainability World Index.
The casino operator was also included in the Dow Jones Sustainability North America Index, making it the first gambling stock to be included in these two benchmarks. At that time, LVS was the only game name in these references.
The Dow Jones Sustainability North America Index includes the North American sustainability leaders identified by S&P Global through the Corporate Sustainability Assessment (CSA), ”says S&P Dow Jones Indices.