Channel NewsAsia Sustainability Ranking · PDF fileBuilding the Sustainability Ranking ......

Channel NewsAsiaSustainability Ranking

Methodology

Annie White & Loic Dujardin

Agenda

Sustainalytics

Building the Sustainability Ranking

Our Research Framework

Key Findings

Sustainalytics

3

Sustainalytics

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We help clients turn vast quantities of environmental, social andgovernance information into insightful, value-added analysis toenable more informed investment and business decisions.

Offices in Amsterdam (HQ), Boston, Frankfurt, Paris, London, New York City, Singapore, Timisoara and Toronto. Representative offices in Bogota, Bucharest, Brussels and Copenhagen and Washington D.C.

Over 180 staff (100+ analysts).

Over 250 institutional clients globally

Owned by Triodos Bank, PGGM, ABN AMRO MeesPierson, Renewal Partners & Senior staff

Building the Sustainability Ranking

5

Selecting the Top 100

Total ESG Scores

Among Top 100 CompaniesOverall ESG Scores range between 63 - 89

Sustainalytics’ Research Framework

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Our Research Process

Review of company

reporting

Review of external

media sources

Analysis by

experienced analyst

Peer reviewing by

sector specialist

Company feedback

process

Research Framework

5

Policies

Management Systems

Disclosure

Targets & Goals

Quantitative Performance

Incidents & Events

Indicators

5

Environmental (50+)

Operations (20+)

Formal Environmental Policy

Environmental fines

Environmental Management System

Participation in Carbon Disclosure Project

Renewable Energy UseGHG Reduction

Programs

Supply chainProducts &

Services

Sample Indicator

E.1.2.4 Oil Spill Reporting and Performance

Answer category Score

The company reports on the total volume of oil spills and shows that this volume has been reduced by more than 5% over the last 5 years

100

The company reports on the total volume of oil spills and shows that the volume of oil spills is low by industry standards

100

The company reports on the total volume of oil spills and has reduced this volume by between 2.5% and 4.9% over the last 5 years

75

The company reports on the total volume of oil spills, which has remained stable (+/- 2.5%) over the last 5 years

50

The company reports on the total volume of oil spills and shows that this volume has increased by more than 2.5% over the last 5 years

25

Disclosure by the company is insufficient to assess the company's performance on oil spills

0

Controversy & Events Assessment

5 Category 5 – Severe: The event has a severe impact on the environment and society, posing serious risk to the company. This category represents the most severe corporate conduct.

Category 4 – High: The event has a high impact on the environment and society,posing significant risks to the company. This category often reflects structural problems in the company.

Category 3 – Significant: The event has a significant impact on the environmentand society, posing moderate risks to the company.

Category 2 – Moderate: The event has a moderate impact on the environmentand society, posing minimal risks to the company.

Category 1 – Low: The event has a low impact on the environment and society, posing negligible risks to the company.

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Company ESG Report

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Key Findings

15

Top 100 Cross Section

Majority of Top 100

based in Hong Kong, India, South Korea &

Taiwan

Real Estate companies score

highest in the environmental

category

Technology Companies

demonstrate the most comprehensive

sustainability strategies

Majority of Top 20

based India & Taiwan;

mainly in the technology sector

77% of Taiwanese

companies disclose CSR reporting in line

with global best practice

Technologycompanies score

highest in the social category

Telecommunication & Media

companies score highest in the

governance category

Governance & Social Findings

53companies

disclose a strong bribery &

corruption policy

42companies are

signatories to the U.N. Global Compact

3companies provide strong disclosure

on taxes paid

14 companies disclose a

CSR report in line with global best

practices

4companies disclose diversity programs that include long

term targets

13companies disclose a

policy on the sourcing of conflict

minerals

Environmental Findings

85companies

have an EMS in place

4 companies derive more than 5% of

their revenues from sustainable products

or services

15companies have a

robust green procurement system

in place

68companies have a program to reduce

GHG emissions; 16 report on scope 1, 2 & 3 emissions

3companies have

waste programs that include reduction

targets

42companies are

considering their water footprint; only 13 disclose reduction

targets

Opportunities

Policies supported by programs >> programs tied to goals >> goals enforced by deadlines

Improved disclosure & engagement

Impact & innovation, beyond regulatory requirements

Holistic approach to sustainability: E + S + G

Improved company-wide integration

Amsterdam | Bogotá | Boston | Brussels | Bucharest | Copenhagen | Frankfurt | London | New York City | Paris | Singapore | Timisoara | Toronto | Washington

For more information please contact:

Annie WhiteAssociate Director, Research Products

Email: annie.white@sustainalytics.comWebsite: www.sustainalytics.com

APPENDIX

21

Sample Indicator

Coverage

Index name

MSCI Asia Pacific (Standard)

ASX 200

STOXX Asia Pacific 600

FTSE World Asia Pacific