Objective of the ESG Report: As an ESG Analyst you are advising your boss – 1. Are each of the assigned companies: • Sustainability/ESG Leaders • Sustainability/ESG Middle of the Pack • Sustainability/ESG Laggards 2. What recommendations do you have for improvement of each company’s ESG Ratings.
Step 3 – Investigate Controversial Issues
Investigate the company’s activities to uncover any controversial issues. Research should include: 1) News within the last year, 2) Investor resolutions tabled at company Annual General Meetings for the company and its peers, 3) Recent legislation or legal decisions impacting the industry, 4) Annual reports by companies and industry associations, and 5) CEO Presentations and Speeches.
Controversial Issues Indicates structural problems with a company’s risk management capabilities. Do they have a “blind spot” on an issue? A controversy case is defined as “an instance or ongoing situation in which company operations and/or products allegedly have a negative environmental, social, and/or governance impact”. Each controversy case is assessed for the severity of its impact on society or the environment and consequently rated Very Severe (reserved for ‘worst of the worst’ cases), Severe, Moderate, or Minor.
AssignmentTutorOnline
Focus on Issues highlighted below as Very Severe.
Controversial Issues
Company A Example: Shell
1. News2. Regulations & Legislative Changes3. Shareholder Resolutions:4. Annual Report – Risks5. Speeches by the CEO/Chair
Company B
1. News 2. Regulations & Legislative Changes 3. Shareholder Resolutions: 4. Annual Report – Risks 5. Speeches by the CEO/Chair
Company C
1. News 2. Regulations & Legislative Changes 3. Shareholder Resolutions: 4. Annual Report – Risks 5. Speeches by the CEO/Chair
