Sands Stock Reappears in Sustainability Indexes Once More

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

Last updated on: December 12, 2023, 04:18h.

Shares of Las Vegas Sands (NYSE: LVS) are set to be included once again in the Dow Jones Sustainability Indices (DJSI), along with 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)

Las Vegas Sands will be part of the DJSI North America Index for the eighth straight year, and the DJSI World Index for the fourth consecutive year. Similarly, Sands China will be included in the DJSI World and DJSI Asia Pacific indices for the second year in a row.

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.

The inclusion of gaming companies in sustainability indexes is gradually increasing, reflecting the industry’s commitment to adopting renewable energy and other sustainable practices. 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

Environmental, social and governance (ESG) investing is gaining popularity, especially among values-driven younger investors, despite facing criticism from some. The inclusion of LVS and Sands China in sustainability benchmarks supports the increasing case for ESG-aligned equity gauges to include 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. The approach is reflective of Sands’ focus on transparency as defined by the major ESG authorities and a dedication to continuously expanding its impact,” added Sands in the statement.

Through its People, Communities, and Planet corporate responsibility pillars, Sands aims to invest $200 million in its workforce by 2025 — a move that could further improve the operator’s ESG profile.

Sands Has Big Carbon Reduction Ambitions

Like many companies worldwide, Sands is placing a strong emphasis on carbon reduction and net-zero goals.

“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.

Realizing its carbon reduction goal could lead to the stock being included in more sustainability indexes in the future.

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