Sustainability analysis methodology
Multi-facetted research provides a solid decision base
Sarasin Sustainability-Matrix clearly shows the approach we use for sustainability analysis.
Industry sustainability on the X axis:
We look at the specific risks that the industry in question poses to people and the environment. Some of the questions we ask for every industry include, for example:
- How high is resource consumption of the industry as a whole?
- How high are emissions?
- What are the potential conflicts of interest for that particular industry both inside the company (e.g. workers’ rights) and outside the company (e.g. product safety)?
Company sustainability on the Y axis:
Next we look at how companies actually manage the environmental and social risks for their specific industry compared with their peer group. Here too we analyse a multitude of facts and answer a series of questions to establish the rankings for all the companies we rate within an industry, such as:
- How high is the company’s energy and material intensity?
- Is the company committed to using renewable resources?
- How does a company conduct its relations with suppliers, the general public and its workforce
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“Our two-dimensional rating methodology relies essentially on an evaluation of issuers along positive criteria. This assesses how well each company deals with the specific ecological and social challenges of its industry, in comparison to its peers. The matrix serves to summarise the results of this relative assessment across all industries. Admittedly, the evaluation behind it is a highly differentiated process – but we like to go about it in a transparent fashion: Customers can request sustainability profiles for individual titles held in their portfolios, and they are welcome to discuss them with the responsible analysts.” Michaela Collins, Client Services Sustainable Investment, former long-serving sustainability analyst at Sarasin |
