Channel NewsAsia
Sustainability Ranking
Methodology
Annie White & Loic Dujardin
Agenda
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Sustainalytics
Building the Sustainability Ranking
Our Research Framework
Key Findings
Sustainalytics
3
Sustainalytics
We help clients turn vast quantities of environmental, social and
governance information into insightful, value-added analysis to
enable 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
4
Building the Sustainability Ranking
5
Selecting the Top 100
Total ESG Scores
Among Top 100 Companies
Overall 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
 Policies
 Targets & Goals
 Management Systems
 Quantitative Performance
 Disclosure
 Incidents & Events
5
Indicators
Environmental (50+)
Operations (20+)
Supply chain
Formal Environmental
Policy
Environmental fines
Environmental
Management System
Participation in Carbon
Disclosure Project
Renewable Energy Use
Products &
Services
GHG Reduction
Programs
5
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 environment
and society, posing moderate risks to the company.
Category 2 – Moderate: The event has a moderate impact on the environment
and society, posing minimal risks to the company.
1
Category 1 – Low: The event has a low impact on the environment and society,
posing negligible risks to the company.
Company ESG Report
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Key Findings
15
Top 100 Cross Section
Majority of
Top 100
Technology
Companies
based in Hong Kong,
India, South Korea &
Taiwan
demonstrate the
most comprehensive
sustainability
strategies
Majority of
Top 20
77%
based India &
Taiwan;
mainly in the
technology sector
of Taiwanese
companies disclose
CSR reporting in line
with global best
practice
Telecommunication
& Media
companies score
highest in the
governance category
Technology
companies score
highest in the social
category
Real Estate
companies score
highest in the
environmental
category
Governance & Social Findings
53
3
13
companies
disclose a strong
bribery &
corruption policy
companies provide
strong disclosure
on taxes paid
companies disclose a
policy on the
sourcing of conflict
minerals
14
42
4
companies disclose a
CSR report in line
with global best
practices
companies are
signatories to the
U.N. Global Compact
companies disclose
diversity programs
that include long
term targets
Environmental Findings
15
85
3
companies
have an EMS
in place
companies have
waste programs that
include reduction
targets
companies have a
robust green
procurement system
in place
68
42
4
companies have a
program to reduce
GHG emissions;
16 report on scope
1, 2 & 3 emissions
companies are
considering their
water footprint; only
13 disclose reduction
targets
companies derive
more than 5% of
their revenues from
sustainable products
or services
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
For more information please contact:
Annie White
Associate Director, Research Products
Email: [email protected]
Website: www.sustainalytics.com
Amsterdam | Bogotá | Boston | Brussels | Bucharest | Copenhagen | Frankfurt | London | New York City | Paris | Singapore | Timisoara | Toronto | Washington
APPENDIX
21
Sample Indicator
Coverage
Index name
MSCI Asia Pacific (Standard)
ASX 200
STOXX Asia Pacific 600
FTSE World Asia Pacific