Week 2-Monitoring the Markets


From September 12-September 16, I began to monitor the markets to see how companies with a sustainable focus  compared to companies that had a financial focus.  I took ten different companies to begin monitoring their progress and compare their respective outcomes.  These companies differed in which sector they cater to as well as to which index they appear on.  The main companies that are utilized which incorporate ESG, or environmental, social and government, strategies appear on an index known as the Dow Jones Sustainability Index.  Each year, this index adds and removes companies from their index based on specific performance criteria and the specific principles that are incorporated into their company practices.  To effectively see how these companies compared, I took their price at the end of the trading day to see how they performed against each individual company.  What I saw was that each company performed similarly on a day to day comparison.  Looking at this data, it led me to believe that I would see little deviation from the selected companies.  This would mean that my study would not yield significant data that would either support or deny my hypothesis.  My next step was to take a step back and reevaluate my approach to see what research and work related activities I could do to approach the different companies.  At this point, I sat down with my work adviser and other co-workers to see how this problem can be approached.  To get a better idea of how these companies performed, it was derived that a historical look should be the main focus of the companies.  By this approach, it can be seen when the companies implemented the strategy, if they made any changes to their strategies and how the market reacted to those changes.  To help in the historical approach, data began to be compiled about each company in regards to when the sustainability strategy was incorporated.  Whatever data was available on their websites and other resources were utilized for the study and if there was no data available, then the companies would be reached out to in order to acquire the data.  After the data was acquired it was then stored in order to prepare for the upcoming weeks of monitoring and analysis.

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