BUSINESS SITUATION
An evaluation of the maturity of ESG disclosures 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.
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 the 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 the different sectors based on their average disclosure rate on material topics.
ENGAGEMENT
- Maturity assessment of corporate disclosures of portfolio companies across sector-material topics via multiple disclosure channels.
BENEFITS & OUTCOME
- 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 TAKEAWAY
- Facilitated the formation of industry benchmarks across sectors.
- Identified upcoming disclosure trends and best practices for companies.
- Effective peer comparison on a standard set of sector-recommended material indicators.
- Monitored alignment to regulatory mandates and voluntary, norms-based guidelines.
- Highlighted sector leaders and laggards.
