Corporate Reporting – Disclosure Analysis CSR_TBL_ESG_Sustainability Indices

1. CORPORATE REPORTING – DISCLOSURE ANALYSIS
(CSR / TBL / ESG / SUSTAINABILITY INDICES)
Dayana Mastura Baharudin

2. What are sustainability indices?
• Sustainability indices are stock market
indices that evaluate the sustainability
performance of companies.

3. Why do we have sustainability indices?
• hey look to synthesize — often with one piece of data, position or seal —
complex concepts related with general company sustainability.
• The objective is to show the public which companies are acting responsibly
when it comes to the environment.
• Given that clients and end users are increasingly concerned with companies’
environmental policies, these indices look to summarize — with regards to
investors searching for ethical projects — which companies are a Socially
Responsible Investment (SRI).
• Not all indices are the same, nor do they measure the same factors. There are
dozens of indices.
• They are sometimes presented as an open list, limited to a specific number of
companies, as is the case with the Dow Jones Sustainability Index (DJSI).
• On other indices, the companies are revealed one by one, as is the case with
FTSE4Good. What they all share is an objective and rigorous work methodology
that looks at a large number of factors in the work environment.

4. What is a sustainability index used for?
• Some factors appear as a synthesis of questionnaires filled
out by the committees of the companies being evaluated.
• Others evaluate levels of CO emissions, recycling
performance, water use reduction, internal sustainability
training policies, sustainability in R&D, and a long list of
items with hundreds of measurable parameters.

5. Sustainability Indices
• Dow Jones Sustainability Index (DJSI). This index is drawn up
by S&P Global.
• FTSE4Good
• Carbon Disclosure Project (CDP)
• STOXX Global ESG. The index is made up of the leading
sustainability companies worldwide in terms of
environmental, social and governance criteria.
• MSCI Global Sustainability Index The MSCI Research
department rewards those investments that meet sustainable
criteria.
• Sustainalytics
• Vigeo.
• ISS ESG.
• GRESB

8. Benchmarking
and
sustainability
Benchmarking is a process of evaluation of organisational
products, services, and processes in relation to the best practice
(Camp 1995, McNair and Leibfried 1995).
The term is often associated with efforts undertaken by
individual firms to identify and imitate best practices within
their own industry.
Benchmarking has been frequently cited as an important tool
used for continuous improvement of organisational performance,
total quality management and competitive advantage (McNair
and Leibfried 1995, Simatupang and Sridharan 2004, Manning et
al. 2008).
Benchmarking has gained considerable popularity in business and
industry (Camp 1995, Zairi and Youssef 1995a, Wever et al. 2007)
and has been well reviewed in practitioner-oriented literature
(Zairi and Youssef 1995b, 1996, Sarkis 2001a).

9. Methodology for
sustainability
benchmarking
Identification of sustainability
indicators.
Raw data gathering according
to the Triple Bottom Line
classifications (Economic,
Social and Environmental)
Trend analysis of the results to
identify which of the TBL
component is the highest or
lowest.

14. CSR
Indicators /
Indices

15. CSR
Indicators /
Indices

16. How do ESG targets link
with SDGs? (Berenberg,
2019)

17. How do ESG targets
link with SDGs?
(Berenberg, 2019

18. How do ESG targets
link with SDGs?
(Berenberg, 2019