Sands Stock Included in Dow Jones Sustainability Indexes

Posted on: December 12, 2023, 04:18h. 

Last updated on: December 12, 2023, 04:45h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.

Shares of Las Vegas Sands (NYSE: LVS) will again be included in a pair of Dow Jones Sustainability Indices (DJSI). The same goes for the operator’s Sands China unit.

Las Vegas Sands
Sands China’s Parisian Macau. The operator and parent Las Vegas Sands were included in Dow Jones Sustainability Indices. (Image: YouTube)

For the eighth consecutive year, the largest US-listed gaming company by market capitalization will be included in the DJSI North America Index, and for the fourth straight year, the stock will be a member of the DJSI World Index. For the second year in a row, Sands China, the operator’s Macau unit in which it recently increased its stake, will be part of the DJSI World and DJSI Asia Pacific indices.

Sands and Sands China are the only two companies in the Casino and Gaming category listed on DJSI World this year, out of 19 companies invited to participate. Sands is the only company in the Casino and Gaming category listed on DJSI North America, and Sands China is one of only two companies in the Casino and Gaming category listed on DJSI Asia Pacific,” according to a statement issued by the Las Vegas-based casino operator.

Gaming companies aren’t usually included in sustainability indexes, but incrementally, that’s starting to change owing to the industry’s commitment to the adoption of renewable energy, among other pursuits. The Dow Jones Sustainability North America Index comprises North American sustainability leaders as identified by S&P Global through the Corporate Sustainability Assessment (CSA), says S&P Dow Jones Indices.

Why it Matters

While environmental, social, and governance (ESG) investing has been vilified by some politicians and market observers, it remains a popular investment methodology, particularly among values-driven younger investors.

The inclusion of LVS and Sands China in the aforementioned benchmarks lends support to the notion that while casino equities have long been excluded from ESG indexes, as the investing style and gaming companies evolve, there’s a rising case for some ESG and sustainability-aligned equity gauges to include shares of casino operators.

“Sands’ DJSI inclusions also reflect the company’s adaptability in aligning efforts and reporting to the major methodology changes and public disclosure expectations made for the CSA this year,” added Sands in the statement. “The approach is reflective of Sands’ focus on transparency as defined by the major ESG authorities and a dedication to continuously expanding its impact.”

Through its People, Communities, and Planet corporate responsibility pillars, Sands said it’s targeting a $200 million investment in its workforce by 2025, a goal that if realized could further burnish the operator’s ESG profile.

Sands Has Big Carbon Reduction Ambitions

With a rising emphasis on carbon reduction and net zero, companies around the world are looking to reduce their carbon footprints. Sands is part of that group.

The company’s 2025 environmental ambition is to achieve a 17.5% reduction in carbon emissions. As of 2022, Sands had achieved a 50% reduction in carbon emissions from its 2018 baseline; however, the cumulative decrease reflected continued pandemic-related impact on property visitation,” according to the company.

Should the gaming company realize that goal, it could pave the way for the stock to be included in more sustainability indexes in the future.