GES Risk Rating

ESG assessment in accordance with PRI

WHAT IS GES RISK RATING?

The GES Risk Rating is an analysis of risks in the companies’ methods of dealing with the environment, human rights and corporate governance. The analysis is based on international norms on Environmental, Social and Governance (ESG) issues. It evaluates both the companies' present status and readiness for the future. The analysis model is easy to implement, and gives an immediate overview over a company's sustainability status, which can reduce the investment risk.

THE ANALYSIS PROCESS

The environmental analysis is based on:

• international standards for environmental management

• industry-specific key indicators for environmental performance

The human rights analysis is based on:

• UN Universal Declaration of Human Rights

• UN Convention on the Rights of the Child

• ILO Core Labour Conventions

The corporate governance analysis is based on the OECD Guidelines for Good Corporate Governance.

The analysis of each specific company is based on official company documents, dialogue with companies, information from non-governmental organisations, the media and GES' partners.

RATING

The companies obtain a rating (from Aa to Cc) for each of the areas environment, human rights and corporate governance. The capital letters (A-C) indicate the general risk level in the company's industry. The lower case letters (a-c) indicate the risk level in the particular company, based on preparedness and performance. Altogether the rating shows the company's ability to deal with the general risks that concern the type of activity and to comply with international norms and procedures.

COVERAGE

The GES Risk Rating covers major world indexes and can be customised with additional companies.

APPLICATION

The result of the analysis can be used in many ways, e.g.:

• a basis for short and long-term recommendations;

• a tool for financial analysts in decisions on composition of entire portfolios and funds;

• a tool for best-in-class analyses;

• a basis for an active ownership;

• a basis for continued sustainability analyses.

For more information, please contact:
, President and Managing Director
, Managing Director, GES Investment Services Denmark
, Managing Director, GES Investment Services Poland
, Managing Director, GES Investment Services Switzerland