ABN AMRO has developed the following methodology for determining the ABN AMRO Sustainability Indicator:
1. Based on a number of relevant ESG aspects for that company, an ESG score on a scale from 1 to 100 will be calculated.
2. The company’s score is ranked relative to its peers in an industry group resulting in a Sustainability Indicator on a scale from one (poor) to five (excellent): poor-weak-moderate-good-excellent.
3. If a company is in breach of the Global Compact principles, this company will be downgraded - depending on how severe the controversy is - by one or more levels: one level for Category 3 controversies, by two levels for Category 4 controversies and to the lowest level (poor) for Category 5 controversies.
4. If a company in a high risk sector lacks any required policy (e.g. an environmental policy for mining companies), this company will be downgraded by one level.