Tuesday 29 September 2015 11:02 pm

Volkswagen emissions scandal: Share price falls as it's removed from the Dow Jones Sustainability Indices

Embattled carmaker Volkswagen has been cut from the leading Dow Jones Sustainability Index (DJSI) due to the fallout from its emissions scandal.

From the close of trading on October 5, Volkswagen will no longer be part of the index according to its organisers RobecoSAM and S&P Dow Jones Indices. The DJSI benchmarks companies on social, economic as well as environmental factors.

"A review of VW’s standing in the DJSI was prompted by the recent revelations of manipulated emissions tests," the organisers said in a statement.

Read more: ECB confirms it has halted buying Volkswagen bonds as fallout from emissions scandal spreads

The carmaker has admitted to US regulators that more than 11 million cars were equipped with software designed to evade emissions tests. Volkswagen has since said it expects to set aside €6.5bn (£4.7bn) in its third-quarter accounts to help cover the costs of the scandal.

"The DJSIC reviewed the situation and ultimately decided to remove the company … as a result, VW will no longer be identified as an industry group leader in the 'automobiles and components' industry group," it said.

Shares in Volkswagen were trading down one per cent in Frankfurt today.