Earlier this month, we learned that Mapfre has once again been included in the Dow Jones Best-in-Class World Index, one of the most important global benchmarks for recognizing listed companies that demonstrate best practices in sustainability. This recognition reflects outstanding performance across environmental, social, and governance (ESG) dimensions. It has also been included, for the first time, in the Dow Jones Best-in-Class Europe Index, which comprises the top 20% of European companies with the strongest performance out of the 600 largest by market capitalization.
Beyond the recognition that comes with being part of sustainability-focused indices, inclusion also brings additional benefits for Mapfre.
Some investors replicate indices. This is a passive investment strategy that involves acquiring stakes in each listed company according to its weighting within these benchmarks. “By being included in these sustainability indices, Mapfre automatically helps increase visibility among this type of investor,” explains Leandra Clark, Director of Investor Relations and Capital Markets at Mapfre.
Another additional advantage is the diversification of the group’s investor base. Funds that invest in sustainability indices have a different profile from those linked to general or sector-specific benchmarks. In this way, Mapfre can attract shareholders in markets where other companies cannot access because they are not part of these indices.
Not all investors interested in sustainability are index funds or passive managers. Being included in an index such as the Dow Jones Best-in-Class World “enhances Mapfre’s appeal among ESG-focused investors or those who use an ESG index as a benchmark without necessarily tracking it,” adds Leandra Clark, highlighting that all the advantages described above ultimately translate into increased visibility for the group among any type of investor with a sustainability focus.
A growing weight
What weight do these sustainability-driven investors have in Mapfre’s capital? To date, they do not represent a large enough volume to influence the stock’s performance. It is other funds—both active managers and index-linked strategies focused on macro factors—that currently have that capacity. Nevertheless, “we have indeed seen some ESG-focused funds among our key investors, and these types of investors may become increasingly relevant,” Leandra Clark notes.
Mapfre is today the only Spanish insurance company present in these indices. Could this be an advantage in terms of portfolio diversification for investors? In principle, no, because ESG-focused investors do not typically apply a sector-based approach, but rather one driven by sustainability criteria. In addition, in the eyes of institutional investors, insurance companies are usually grouped together with banks within the financial sector.
