Our in-house ESG team analyses the constituents of MSCI All Country World Index + largest companies listed on the Oslo and Stockholm Exchanges with respect to ESG performance. The Sustainability Rating is 0-100, sector based and comprises:
A) ESG management systems (policies, practice and performance) (40% of score)
B) Positioning for shifting business frameworks and global sustainability trends (40% of score) These trends are
- Population Growth and Resource Scarcity
- Growth in Emerging Markets
- Increased demand for Sustainable Products
C) Financial robustness (20% of score): based on Piotroski F-score
The companies that perform best in this screen can generally be said to demonstrate:
- solution based products and services relative to exposure to growth markets by sector/region
- risk management quality relative to risk exposure (sector/region)
- efficient use of resources relative to resource constraints