Corporate responsibility is evaluated and then rated out of 10 (Responsibility rating). The analysis is composed of 4 themes: shareholders responsibility, environmental responsibility, labour responsibility and social responsibility. We have retained the four traditional dimensions of corporate social responsibility, selecting for each only the most material analysis criteria.
Each theme is built according to the most relevant material issues for companies (sector and company's specifics). The number of analysis criteria is deliberately limited to 24, in order to retain only the most material issues. For financial issuers, governance issues are deemed the most material and will thus typically account for about 40% of the overall "Responsibility" rating.
Here are the detailed ESG criteria used:
- shareholders (G): Respect for minority shareholders, Independence of Board and committees, Accounting risks, Quality of management, CEO compensation and Quality of financial reporting
- environment (E): Environmental management, Regulation and certification, Climate & energy policy and Impact on biodiversity and externalities
- labour (S): Corporate culture and HR management, Labour relations and working conditions, Health and safety, Attractiveness and recruitment, Training and career management and Promotion of diversity
- social (S): Product quality, safety and traceability, Supply chain management, Respect for local communities and human rights, Ability to innovate, Customer satisfaction, Protection of personal data, Corruption and business ethics and Tax policy and practices