ESG Research & Development

ESG is an acronym for environmental, social and (Corporate) Governance. It means considering the potential profitability and risks of an investment, as well as incorporating its corporate values and concerns (such as environmental, social concerns) into its investment choices and process.

Depending on the investment examined;

● Factors such as pollution, consumption and climate change arising from activities are evaluated under the category "E".
● In the "S" category, sustainability, socio-economic impacts, human resources and corporate mission are evaluated.
● Under the "G" category, the skills, functions, duties, responsibilities of senior management units are analyzed, their independence levels and accountability are evaluated.

ESG Rating

In line with the demands of the organizations, we evaluate the ESG levels within the framework of general or specific investments and provide technical and administrative support for development. The main issues evaluated in this context are listed below.

● ENVIRONMENTAL STRATEGY
In this sustainability driver we analyse the overall content of the Environmental Strategy of the company as well as its supporting managerial structures.

● RENEWABLE ENERGY
In this sustainability driver, we analyse how companies conduct R&D on, develop and market green products and/or services

● BIODIVERSITY
In this sustainability driver, we analyse how the company’s work to prevent risks of endangering biodiversity.

● SOCIAL STANDARDS IN THE SUPPLY CHAIN
In this sustainability driver we analyse the extent to which companies integrate social standards into their relationships with suppliers.

● CORRUPTION
In this sustainability driver we analyse how companies work to prevent all forms of corruption in their business

● ANTI-COMPETITIVE PRACTICES
In this sustainability driver we analyse how companies ensure the respect of international market principles related to competition

● RESPONSIBLE LOBBYING
In this sustainability driver we analyse how companies ensure both transparency and integrity when conducting lobbying practices

● FUNDAMENTAL HUMAN RIGHTS
In this sustainability driver, we assess the extent to which companies are complying with obligation to respect human rights in the community. This obligation includes: respect of effective exercise of fundamental human rights and personal rights ; prevention of human rights violations or complicity of violations ; promoting or contributing to promote rights are also part of the obligation.

● FUNDAMENTAL LABOUR RIGHTS
In this sustainability driver, we analyse how companies respect, protect and promote the fundamental labour rights of their employees namely, freedom of association and the right to collective bargaining.

● NON-DISCRIMINATION
In this sustainability driver, we assess the way in which the company prevents gender discrimination on workplace and other discrimination regarding work conditions, vocational training, promotion, fees, and other benefits. Positive measures and specific measures intended to protect and support women (pregnancy, maternity) or vulnerable people, constitute measures to promote equal opportunity and treatment.

● SOCIAL DIALOGUE
In this sustainability driver, we analyse the extent of the companies commitment towards social dialogue with employees in the workplace. We examine what topics are covered by bargaining agreements as well as the employee representative bodies that have been put in place.

● REORGANISATION
In this sustainability driver, we analyse the extent of the company’s commitment to undertake business reorganisations in a responsible manner.

● CAREER MANAGEMENT
In this sustainability driver, we analyse how companies establish career management structures that adapt employee skills to their job requirements, enable the progressive development of additional skills and qualifications and ensure transparent frameworks for career management.

● HEALTH AND SAFETY
In this sustainability driver, we analyse how companies ensure and improve the health and safety conditions for employees.

● SOCIAL AND ECONOMIC DEVELOPMENT
In this sustainability driver, we examine how companies promote local social and economic development in areas where they have operations. We also analyses the extent of companies' commitments towards good tax governance in this sustainability driver.

● ACCESS TO ENERGY & PRODUCT
In this sustainability driver we examine two elements. Company efforts to promote accessibility to products and Services. Companies can have a positive impact on societies by promoting access to their products and Services through reduced pricing, improved distribution models or by developing product variations specifically for vulnerable customers. Management of the negative societal Impacts related to product and services. Here we analyse situations where companies produce goods or provide services that whilst legal, may cause harm to the health of humans (alcohol, tobacco etc).

● BOARD OF DIRECTORS
In this sustainability driver, we analyse the composition, skills, functions and the mandate of the Board of Directors. Their level of independence is assessed as well as the extent of their accountability to shareholders. Amongst other things, we assess the level of diversity on the Board in terms of skills, gender and expertise. We analyse whether training on CSR (CORPORATE SOCIAL RESPONSIBILITY) issues is provided to Board members and the level of responsibility allocated to the oversight of CSR issues at Board level is also examined.

● AUDIT & INTERNAL CONTROLS
In this sustainability driver we analyse the risk management and oversight systems that have been established at the top level of the company. Alongside the composition, independency and mandate of the Audit Committee, we examine whether this committee has expertise in CSR, the operational risks that are covered by internal control systems, the processes in place related to the management of CSR risks (trainings, materiality assessments etc) as well as the level of assurance provided by auditors on the CSR reporting of a company

● EXECUTIVE REMUNERATION
In this sustainability driver, we assess whether companies report transparently on the absolute levels of and the rationales for executive remuneration (both long term and short term). We examine whether or not executive remuneration is tied to specific CSR targets as well as the level of shareholder support for remuneration based resolutions at Annual General Meetings.