1. Environment
This aspect focuses on a company's impact on the environment. It includes factors such as carbon emissions, energy efficiency, waste management, pollution, resource depletion, and climate change adaptation strategies. Companies with strong environmental practices aim to minimize their negative environmental impacts and promote sustainability.
1.1 Does the company have a strategy to reduce its carbon footprint and transition to renewable energy sources?
1.2 Are there initiatives for measuring and reporting emissions, setting reduction targets, and monitoring progress?
1.3 Are there programs or initiatives to improve resource efficiency, minimize waste production, and promote circular economy principles?
1.4 Has the company implemented measures to mitigate environmental impacts related to resource extraction or production processes?
1.5 Are there initiatives to promote recycling, waste reduction, and proper waste management?
1.6 Does the company assess and address its impacts on biodiversity, ecosystems, and natural habitats?
1.7 Are there initiatives to protect and restore ecosystems, conserve biodiversity, and mitigate negative impacts on wildlife and natural resources?
1.8 Has the company assessed the physical and transitional risks posed by climate change?
1.9 Are there adaptation measures for changing climate conditions, such as extreme weather events or changes in resource availability?
1.10 Does the company comply with applicable environmental laws, regulations, and permits?
1.11 Are there environmental management systems or policies in place to ensure ongoing compliance and risk mitigation?
1.12 Has the company faced significant environmental incidents or legal actions related to environmental non-compliance?
2.Society
This category assesses a company's social impact. It includes factors such as labor standards, employee diversity and inclusion, human rights, community relations, product safety, customer satisfaction, and supply chain management. Companies with strong social practices prioritize fair treatment, respect for human rights, and positive social contributions.
2.1 Does the company promote fair employment practices, including equal opportunities, non-discrimination, and fair wages?
2.2 Does the company have policies or initiatives to prevent forced labour, child labour or other human rights violations within its operations and supply chain?
2.3 Does the company promote diversity and inclusion in its workforce, including gender, ethnicity, age, and other dimensions of diversity?
2.4 Are there initiatives to ensure equal opportunities for career development and leadership positions?
2.5 Does the company attract employees and encourage their active participation in decision-making processes?
2.6 Are there programs that support employee development, training, and skills development?
2.7 Does the company offer competitive benefits, work-life balance initiatives and employee well-being programmes?
2.8 Are there initiatives to support community development, education, healthcare or other social needs?
2.9 Is the company listening and addressing the concerns and interests of the community?
2.10 Does the company prioritise the health and safety of its customers?
2.11 Are there procedures in place to ensure the safety and quality of products or services?
2.12 Does the company have mechanisms to address customer comments, complaints, and product recalls?
2.13 Does the company assess and manage social risks and impacts within its supply chain?
2.14 Are there measures to ensure that suppliers comply with social standards, including labour and human rights?
2.15 Does the company work with suppliers to improve social welfare and transparency?
2.16 Does the company participate in charitable activities or social impact initiatives?
2.17 Are there programs to support social causes, community development or charities?
2.18 Does the company measure and report the social outcomes or impact of its charitable efforts?
3.Governance
Governance refers to the management and oversight practices of a company. It includes factors such as board composition, executive compensation, transparency, accountability, risk management, and shareholder rights. Companies with strong governance practices demonstrate ethical leadership, effective decision-making, and responsible risk management.
3.1 Does the board consist of a different set of independent and qualified individuals?
3.2 Are there measures to ensure a balance of skills, experience, and expertise on the board?
3.3 Does the company have a clear separation of roles between the board and management?
3.4 Are executive compensation practices aligned with the long-term performance and interests of the company's shareholders?
3.5 Is there transparency and disclosure regarding executive compensation policies and practices?
3.6 Does the company have measures in place to prevent excessive or disproportionate executive compensation?
3.7 Does the company have effective risk management procedures and internal control systems in place?
3.8 Are there mechanisms in place to identify, assess, and mitigate risks across the organization?
3.9 Does the company respect and protect shareholders' rights, including voting rights and access to information?
3.10 Are there mechanisms for shareholders to engage with the company and provide information for strategic decisions?
3.11 Does the company have a code of conduct or ethics policy that sets clear expectations for employees and stakeholders?
3.12 Are there mechanisms to prevent bribery, corruption, fraud or other unethical practices?
3.13 Does the company provide accurate, timely, and comprehensive disclosure of relevant information to interested parties?
3.14 Are financial reports, sustainability reports, and other disclosures prepared in accordance with recognised standards and guidelines?
3.15 Does the company actively engage with stakeholders to understand their concerns and interests?
3.16 Are there mechanisms to address stakeholder feedback and incorporate it into decision-making processes?
