2017 RobecoSAM Corporate Sustainability Assessment Methodology Changes. March 14th, 2017

Transcription

1 2017 RobecoSAM Corporate Sustainability Assessment Methodology Changes March 14th, 2017

2 Agenda Introduction Aris Prepoudis, Chief Executive Officer 2017 Methodology Review & Changes Jacob Messina, Head of Sustainability Investing Research Rashila Kerai, Senior Sustainability Investing Analyst General Information & Next Steps Amara Goeree, Sustainability Operations Manager Q&A 2

3 2017 Methodology Review 3

4 Methodology Review 2017 Focus on three pillars Materiality 2016: removed up to three criteria in each industry 2017: targeted question removal Quality & consistency Alignment with other global sustainability reporting frameworks Major Methodology Changes Policy Influence (all industries) Supply Chain Management (selected industries) Impact Measurement (most industries) Product Stewardship (selected industries) Denominators (all industries) 4

5 Policy Influence 5

6 Policy Influence This new criterion has been added to ALL industries Civil society, consumers, and investors awareness has increased Companies legitimately represent themselves, but excessive contributions create risk The questions will be applied to all sectors Two questions in the criteria Total contributions and other spending Five largest contributions and expenditures Benefits: Recognized leadership for companies that have lower reputational and corruption risk through declining spend and superior transparency for investors and the public. 6

7 Supply Chain Management 7

8 Supply Chain Management Supply chain management criterion has been updated Main changes include: Question deletions: Environmental impact from transportation Opportunities Remaining questions Same applicable industries Content simplification Increased focus on risk monitoring and depth of risk assessment (e.g. critical non-tier 1 suppliers) New industry specific question: Benefits: Conflict Minerals (ARO, ATX, AUT, CMT, CTR, ELQ, IDD, IEQ, ITC, SEM, THQ) Recognized leadership for companies with superior practices on risk identification and monitoring: frequency, scope & depth 8

9 Supply Chain Management Question: Supplier Code of Conduct RobecoSAM asks whether the company has a supplier code of conduct that is publicly available Publicly available supplier code of conduct *This question was part of risk management measures and it has now been separated out Question: Awareness RobecoSAM asks whether a company is able to identify critical suppliers Definition of critical suppliers Identification of critical tier 1 and non-tier 1 suppliers (NEW) Supporting documents 9

10 Supply Chain Management Question: Risk Exposure RobecoSAM asks whether the company has a formalized process in place to identify potential sustainability risks in the supply chain Formal risk identification process Sustainability risk assessment scope and targets (NEW: Suppliers assessed in the last 3 years for both categories and related targets) Share of high-risk suppliers: Tier 1 and Critical non-tier 1 (NEW) Supporting documents Question: Risk Management Measures RobecoSAM asks which measures companies have taken in order to manage sustainability risks among your critical suppliers (tier 1 and non-tier 1) and your high sustainability risk suppliers Reporting the percentage of suppliers assessed (NEW: frequency of assessment & scope: critical non-tier 1 and suppliers with high sustainability risk) Corrective action plans for suppliers Supporting documents 10

11 Supply Chain Management Question: ESG Integration in SCM Strategy RobecoSAM asks which are the main priorities of your company s general supply chain management strategy, and how it links to the company s ESG objectives Description of general supply chain strategy and link to ESG objectives Integration of ESG factors into supplier selection through minimum thresholds Percentage weight of ESG factors in overall assessment for supplier selection Supporting documents *Responsibilities and incentives for staff have been removed Question: Transparency and Reporting RobecoSAM asks on which aspects of supply chain the company reports Public reporting NEW: Reporting of 3 supply chain KPIs and targets 11

12 Supply Chain Management New Question: Conflict Minerals RobecoSAM asks whether the company has a comprehensive strategy in place to avoid contributing to conflict through its purchasing decisions Applicable Industries ARO, ATX, AUT, CMT, CTR, ELQ, IDD, IEQ, ITC, SEM, THQ Public policy Risk identification process Risk management to mitigate or remediate risks Labeling initiatives 12

13 Impact Measurement & Valuation 13

14 Impact Measurement & Valuation The Impact Valuation questions have been extended to 57 industries This was applied to a select set of industries in 2016 and now is extended Benefits Recognizes leadership for those that are measuring and valuing the impacts of their most significant externalities 14

15 Impact Measurement & Valuation Question: Impact Valuation RobecoSAM asks whether a company measures its environmental and social profit & loss (i.e., valuing externalities) Supporting documentation of valuation of impacts For programs in development, clear explanation of status and timeline Question: Valuation Disclosure RobecoSAM asks to which extent companies are publically reporting on their measurement and valuation methodologies Valid weblink or reference to recent information in the public domain 15

16 Product Stewardship 16

17 Product Stewardship Update of criterion Existing questions have been updated Some questions are general and applied to all industries who have this criterion Additional industry specific questions where applicable Benefits Recognizing a higher quality and rigour of product stewardship Move from asking description of initiatives qualitatively to more quantitative measures of implementation and/or effectiveness Alignment with other reporting standards (i.e., SASB) 17

18 Product Stewardship general questions Question: Product Design Criteria RobecoSAM asks whether environmental criteria in the different stages of the product lifecycle are considered in the development of new products Supporting documentation indicates environmental consideration at the different development stages Question: Life Cycle Assessment RobecoSAM asks which impacts are included in the LCAs and the percentage of products covered by some form of LCA Broad coverage of impacts included in the LCA Supporting documentation demonstrates a comprehensive approach 18

19 Product Stewardship general questions Question: Product Benefits RobecoSAM asks what percent of a company s products provide resource efficiency benefits during the use phase Description clearly explains benefits to customers and consumers through the use of a company s products Question: Hazardous Substances RobecoSAM asks whether a company measures and monitors the hazardous materials in its products. These include regulated, of international concern, and on SIN list Companies are aware of the content of their products and should be able to provide this information 19

20 Product Stewardship general questions Question: Commitment RobecoSAM asks whether a company has a commitment to reduce or phase-out hazardous substances from its products, and the progress made towards the target Supporting information demonstrates specific commitment related to hazardous substances content of products 20

21 Product Stewardship additional questions Question: End of Life Cycle Responsibility RobecoSAM asks to what extent a company is actively involved in take-back programs. This includes percentage of products that can be reused/recycled, volume taken back, and associated financial benefits Companies that demonstrate responsibility for the environmental and social impact of their products through their life cycle should be able to provide evidence. Leading companies should obtain financial benefits from running a take-back program and be able to quantify it. Question: Environmental Labels and Declarations RobecoSAM asks what percentage of products are covered by environmental product declarations Companies are expected to communicate to stakeholders their environmental commitment through the use of accepted international standards. Supporting information provides evidence of their transparency efforts. 21

22 General Information & Next Steps 22

23 Company Information - Denominators We have moved the denominator question to a new dimension called Company Information Previously all industries had a denominator question in the Operational Eco-Efficiency criterion in the Environmental Dimension. This exact denominator has been moved in the new Company Information section at the beginning of the questionnaire. Additions: 1. Select which currency you will be using throughout the questionnaire. This will then be prefilled in all questions where we ask for financial figures. 2. Revenues are required for all industries 3. If your questionnaire allowed several denominators, you will be asked to select which one you prefer to use for normalization. 4. A few industries will see new denominators that they can select (e.g. occupied rooms in TRT Hotels, Resorts & Cruise Lines) What are the denominator figures used for? To normalize the indicators in Operational Eco-Efficiency To normalize by revenues in political contributions in the new question Contributions and Other Spending in Policy Influence To normalize other time series in some industry specific questions throughout the questionnaire 23

24 Key Dates 2017 Information update with draft versions of key methodology changes Official deadline for submitting completed questionnaires Official invitations sent out to all eligible companies Webcasts on major methodology updates Feb/ March March 30 th May 30 th September 7 th Launch of the new Announcement of questionnaires through new index members the online assessment tool Source: RobecoSAM 24

25 Tips for a Successful Submission If requested, provide supporting evidence for all answer options that you have marked (i.e. not just for some). If specifically indicated, make sure your supporting evidence is publicly available. Remember that the official language of the DJSI is English. If you feel that a specific question is not applicable to your company s business model, please provide a comment explaining why. Provide explanatory comments if needed, especially if answers or data have changed significantly from one year to another. Be brief and to the point. Make sure that you provide the most relevant information for the question asked. Pay attention to warning messages in the system, which may point to incomparable data or typos that have been entered. 25

26 Questions? RobecoSAM CSA Helpline or 26

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