Client
One of the world’s largest stock exchanges.
Business Situation
An evaluation of the maturity of ESG disclosure of 800 companies across 23 sectors and 4 predefined self-declared sources was necessitated. The shortlisted companies were to be analyzed on a set of approximately 30 key material issues, varying from sector to sector but common within each sector.
Engagement
Maturity assessment of corporate disclosure of portfolio companies across sector-material topics via multiple disclosure channels.
SGA Approach
- Identified key material issues and subsequent performance indicators for 23 sectors.
- Collated disclosures against each material indicator from self-disclosed and verified sources such as annual report, ESG reports, proxy statements, integrated reports, and company website.
- Mapped key material indicators for each sector to multiple globally accepted reporting frameworks.
- Scored the maturity level of company’s disclosures via desktop research using self-disclosed and verified sources.
- Monitored performance ratings and rankings awarded by external agencies to portfolio companies.
- Created a repository of reporting frameworks used by companies across different sectors.
- Provided insights into the highest and lowest reported indicator for each sector as well as the most commonly reported sector for each indicator.
- Identified companies leading and lagging across the sector as well as the portfolio universe.
- Compared different sectors based on their average disclosure rate on material topics.
Benefits and Outcomes of Our Engagement
- Effective due diligence for portfolio companies across disclosure channels.
- Strategic insights driven by subject matter expertise of experienced consultants.
- Monitored evolution in compliance and disclosure strategies.
Key Takeaways
- Facilitated formation of industry benchmarks across sectors.
- Identified upcoming disclosure trends and best practices for companies.
- Provided effective peer comparison on a standard set of sector-recommended material indicators.
- Monitored alignment with regulatory mandates and voluntary, norm-based guidelines.
- Highlighted sector leaders and laggards.
