To produce the 2014 Channel NewsAsia Sustainability Ranking, CSR Asia and Channel NewsAsia partnered with leading ESG research provider, Sustainalytics, to assess each company’s environmental, social and governance (ESG) performance. The Ranking identifies and celebrates the Top 100 sustainable companies in Asia and highlights the Top 20 Asian companies as well as the Top 3 companies in each of the 10 markets covered1.
The Channel NewsAsia Sustainability Ranking focuses on Asian companies that are publicly listed on major indices across China, Hong Kong, India, Indonesia, Malaysia, the Philippines, Singapore, South Korea, Taiwan and Thailand (as of April 2014).
The companies featured among the Top 100 were selected on the basis of their performance across a broad range of environmental, social and governance indicators tracked in Sustainalytics’ Global Platform. These companies rank at the top of their respective industries in their region, in areas such as environmental initiatives, impact on local communities, treatment of employees and supply-chain management.
An analysis of positive, performance-related criteria is counterbalanced by an assessment of ESG controversies and incidents, which often indicate the extent to which management systems are effectively implemented. As part of Sustainalytics’ research process, all eligible companies were screened for their level of complicity in major controversies to determine the degree of severity and their accountability.
The Sustainability Ranking is based on available disclosure as of June 2014. Covering a diverse set of industries, the Top 100 companies must demonstrate strong public disclosure on company-wide ESG management and performance. Sustainalytics assesses the breadth and quality of a company’s ESG disclosure, in part, by its level of involvement in key transparency initiatives such as the Global Reporting Initiative and the Carbon Disclosure Project.
Sustainalytics’ research process includes a thorough examination of sources from around the world including: annual reports, financial reports, CSR reports, CSR websites, news releases, online databases, government sources, NGO research and direct communication with key stakeholders. Sustainalytics also monitors roughly 20,000 news sources from around the world and assesses those news items that may be significant from an ESG perspective.
As part of the research and due diligence process, all eligible companies were notified by e-email in mid-July and given an opportunity to review and verify Sustainalytics’ assessment of their ESG performance. Approximately 25% of the companies responded. Information provided after the ranking was assembled could not be taken into consideration.
Sustainalytics’ analysts use a Best-of-Sector™ methodology to compare companies within a given sector to industry best practices. Each company’s ESG assessment undergoes a rigorous internal peer review process, before being finalized.
Sustainalytics’ research is used by some of the world’s largest institutional and individual investors who consider environmental, social and governance performance, in addition to financial performance, in the management of their investments.
Companies interested in learning more about Sustainalytics’ assessment of their ESG performance are welcome to contact: firstname.lastname@example.org
1 In 2014, 3 companies – 1 in China and 2 in the Philippines - qualified as one of the Top 3 performing companies in their respective regions, but did not qualify as one of the Top 100 companies.