Sustainability Yearbook: Methodology Overview
Each year, over 3,000 of the world’s largest companies are invited to participate in the RobecoSAM Corporate Sustainability Assessment (CSA). In the process, RobecoSAM has compiled one of the largest global databases on corporate sustainability.
For each industry, the company with the highest score is named the RobecoSAM Industry Leader, and is considered to be the company within its industry that is best prepared to seize the opportunities and manage the risks deriving from economic, environmental and social developments.
Companies whose score is within 1% of the Industry Leader’s score receive the RobecoSAM Gold Class award.
All companies receiving a score within a range of 1% to 5% from the score of the Industry Leader receive the RobecoSAM Silver Class distinction.
Companies whose score is within a range of 5% to 10% from the score of the Industry Leader receive the RobecoSAM Bronze Class distinction.
Within the top 15% of each industry, the company that has achieved the largest proportional improvement in its sustainability performance compared to the previous year is named the RobecoSAM Industry Mover.
Sustainability Yearbook Member
All companies that have been included in the Yearbook, but that have not received a medal distinction, are listed as a Sustainability Yearbook Member. In order to be listed in the Yearbook, companies must be within the top 15% of their industry and must achieve a score within 30% of their Industry Leader’s score.
RobecoSAM is pleased to see that over the years, participation rates in the RobecoSAM Corporate Sustainability Assessment have continuously risen – with a record number of companies taking part in this year’s assessment – indicating that sustainability is increasingly rising to the top of corporate agendas and becoming more mainstream.
RobecoSAM offers insights highlighting opportunities and risks deriving from economic, environmental and social trends and developments that have an impact on the competitive position of companies in each of the 59 industries
Not only are the top 15% of the companies from each industry included in The Sustainability Yearbook, but they are also classified into three categories: RobecoSAM Gold Class, RobecoSAM Silver Class and RobecoSAM Bronze Class. In addition, the top performing company from each industry is named the RobecoSAM Industry Leader.
Furthermore, in order to be included in the Yearbook, companies must achieve a score within 30% of their Industry Leader’s score.
In addition to the companies’ sustainability scores derived from the CSA, a qualitative screen based on RobecoSAM’s Media & Stakeholder Analysis (MSA) is also applied to determine eligibility for inclusion in The Sustainability Yearbook. The MSA is based on an examination of media coverage and publicly available stakeholder information provided by RepRisk ESG Business Intelligence and evaluates a company’s response to critical sustainability issues that may arise during the year. This process aligns the Yearbook’s methodology with any decision by the Dow Jones Sustainability Index Committee to exclude a company from the DJSI, which is also based on the MSA.
Corporate Actions RobecoSAM monitors corporate actions throughout the year. In-line with the treatment of corporate actions for the Dow Jones Sustainability Indices, RobecoSAM will review corporate actions on a case-by-case basis and apply a consistent methodology. For mergers or acquisitions where the merged/acquired company represents 33% or more of the free-float market capitalization of the combined entity, a merged score will be used for the surviving entity. The merged score is calculated as the market cap-weighted score of the individual entities prior to the merger/acquisition. For companies below this threshold, no merged score will be used and the original score of the acquiring/surviving company will be used.
If a company is delisted as a result of a corporate action prior to the end of October, it will no longer be eligible for inclusion in The Sustainability Yearbook, given that the entity no longer exists. Companies with a merged score are marked in the Yearbook.
Changes in company names are reviewed periodically and the names of all companies have been updated to the best of RobecoSAM’s knowledge at the time of printing. Name changes occurring after this date may not be reflected in the Yearbook.