Las Vegas Sands Again Earns Sustainability Index Inclusion

Posted on: December 20, 2022, 04:42h. 

Last updated on: December 20, 2022, 05:08h.

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

Las Vegas Sands (NYSE:LVS) announced today that its stock is again being included in the Dow Jones Sustainability Indexes (DJSI).

Sands
Sands Cotai Central in Macau. Las Vegas Sands and Sands China stocks are being included in various sustainability indexes. (Image: Sands China)

To be precise, shares of the largest US casino operator by market capitalization will be included in the DJSI North America Index for a seventh time and will be part of the DJSI World Index for a third straight year.

The Dow Jones Sustainability World Index comprises global sustainability leaders as identified by S&P Global through the Corporate Sustainability Assessment (CSA). It represents the top 10% of the largest 2,500 companies in the S&P Global BMI based on long-term economic, environmental and social criteria,” according to a statement issued by the gaming company.

Members of the Dow Jones sustainability benchmarks are evaluated based on long-term economic, environmental, and social criteria.

More Index Accolades for Sands

Las Vegas Sands is the only gaming equity included in the DJSI North America gauge, and is one of just three in the world index.

One of the other two is Sands China, which operates five integrated resorts in Macau. This is the first time Sands China is being included in the world index. But the stock earned a repeat appearance in the DJSI Asia Pacific Index.

Sands China commanding a spot in the sustainability index is relevant for multiple reasons, not the least of which is money managers that benchmark to that gauge have to buy the gaming company’s shares. The operator is one of just two gaming names in the DJSI Asia Pacific gauge.

“The DJSI was launched in 1999 as the pioneering series of global sustainability benchmarks available in the market. The index family is comprised of global, regional and country benchmarks. The S&P Global CSA is an annual evaluation of company sustainability practices, covering more than 10,000 companies from around the world,” added Sands in the press release.

Why It Matters

The inclusion of Sands securities in the aforementioned benchmarks is pertinent for multiple reasons. First is the aforementioned active fund managers that benchmark to those indexes and passive funds that follow those gauges must buy shares of the companies held by those indexes.

Second, environmental, social and governance (ESG) is an increasingly prominent investing style, and one that’s being met with tens of billions of dollars in investor assets. While gaming companies are often excluded from related benchmarks, Sands’ inclusion in the DJSI series could put the casino operator’s stock in front of a new crowd of investors.

“Inclusion on the 2022 Indices was driven by our emphasis on being the employer and partner of choice in the regions we call home, the strategic investments we make to ensure our communities’ strength and resiliency, and our leadership in delivering comprehensive initiatives to minimize environmental impact,” said Sands CFO Patrick Dumont in the statement.