ESG score definition

ESG score means an ESG measure derived from data, using a rule-based methodology, and based only on a pre-established statistical or algorithmic system or model, without any additional substantial analytical input from an analyst;

ESG score means the environmental, social and governance (“ESG”) score assigned to the Borrower from time to time by the ESG Agency as shown in the most recent ESG Report issued to the Borrower.

Examples of ESG score in a sentence

• The portfolio construction will consider the overall ESG score as well as the contribution to risk that arises from ESG exposures.

• Based on the various data provided by our ESG partners (extra-financial analysis agencies, external service providers, etc.), the annual reports of the companies and direct exchanges with them, the analysts responsible for monitoring each stock draw up an internal ESG score.

• Balance of powers and efficiency of the board of directors / Audit of control mechanisms / Shareholders’ rights / Remuneration of executives The issuer’s overall ESG score is equal to the weighted average of the Criteria scores.

• All recommendations issued by the Credit Research Team include an ESG score which is considered amongst other factors in determining the overall view on a given security.

• For investments without an external ESG score, an in-house equivalent analysis is conducted by the Investment Manager.The selection process systematically excludes at least 20% of the investment universe based on a combination of ESG scores and sector/behaviour exclusions.

• The Sustainable funds will use ESG criteria provided by internal research teams and complemented by external ESG score providers to form an assessment of a security’s Sustainable characteristics.

• Positive/best-in-classscreeningThe "best-in-class" selection consists in selecting in a sector of activity the UCIs/UCITS that have the best ESG score, compared to the industry average.

• Over 90% of the Funds’ assets (listed equities, and corporate bonds if relevant) are assessed for ESG score and risks.

• We track the ESG quality using an overall ESG score as well as E, S and G scores, as illustrated below: Image provided for illustrative purposes only.

• In determining the ESG score of the Sub-Fund and the Benchmark, ESG performance is assessed by comparing the average performance of a security against the security issuer’s industry in respect of each of the three ESG characteristics of environmental, social and governance.