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Channel NewsAsiaSustainability Ranking
Methodology
Annie White & Loic Dujardin
Agenda
Sustainalytics
Building the Sustainability Ranking
Our Research Framework
Key Findings
Sustainalytics
3
Sustainalytics
4
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.
1
Company ESG Report
6
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: [email protected]: www.sustainalytics.com
APPENDIX
21
Sample Indicator
Coverage
Index name
MSCI Asia Pacific (Standard)
ASX 200
STOXX Asia Pacific 600
FTSE World Asia Pacific
