In the environmental part of our ESG analysis, we evaluate the issuers' efforts and goals to reduce CO2 and GHG emissions, and to save in energy consumption. We contact the issuers, if we don't find information on their carbon footprint. In addition we evaluate the issuers' other efforts to protect environment. Especially, we asses the impact on the use of energy, different resources like land and water, where that's relevant to the issuers' operations. Also, the possibility to use waste material in the production process is evaluated.
In the social part of our ESG analysis, we evaluate the issuers' efforts and goals to offer employment opportunities equally to both genders and all kind of employees incl. possibly different minorities, nationalities and races. Also, we assess what kind of initiatives the issuers' have made to promote well being of their employees and the communities where they operate, to improve the sustainability of their employee and community relationships. Depending on the operating environment, we evaluate if the issuers have potential problems with labor practices, like use of child labor or poor working conditions and salaries. For many more issuers more relevant is to evaluate, how the issuers monitor their supply chain, so that their suppliers don't violate acceptable standards regarding labor policies.
In the governance part of our ESG analysis, we evaluate how adequately the issuers' organisations are set up to cope with the increasing challenges in corporate governance. Especially, we look how the top executive officers take the responsibility of the sustainablitiy of their operations. In our opinion, it's important that the whole management of the company takes the responsibility, and not just outsource "sustainability issues" to specific task groups, to polish the image of the company. Some companies struggle with different accusations of misconduct or illegal actions. We discuss those issues with the issuer representatives, and asses whether the management takes the accusations seriously enough, and if those organisations have made necessary steps and changes to prevent possible misconducts in the future.