ECPI COMPANY RATING
ECPI uses a rule-based approach involving approximately 100 key performance indicators to evaluate an issuer’s environmental, social and governance sustainability.
COMPANY RATING SECTIONS AND CATEGORIES
That analysis produces a score and a rating. ECPI’s proprietary rating scale ranges from “F” to “EEE”, along 9 notches. Rating thresholds may be customized, but its standard ESG methodology generally excludes from the investable universe all companies rated “F”.
In applying its sector screening methodology to corporate equity and bond issuers, ECPI may exclude issuers operating in any controversial sectors specified by its clients. These might include issuers involved in Alcohol, Tobacco, Pornography, Nuclear energy, Military/Defense, GMO food production, Contraception or Gambling. Exclusions are generally determined by the percentage contribution of the controversial sector to the issuer’s total revenues. These exclusion thresholds varied by controversial sector to reflect clients’ preferences or requirements.
ECPI COUNTRY RATING
ECPI Sustainability methodology applied to government issuers is aimed to guarantee investors that the investment portfolio is built exclusively with financial instruments issued by Governments which are compliant with international Environmental, Social and Governance (ESG) standards and without any significant liabilities in any of the aforementioned areas. Since 1948, when the Universal Declaration of Human Rights was created, nations have begun to recognize the importance of respecting human dignity, the freedom of expression and movement, equal opportunities in the work and political spheres, non-exploitative labour practices, respect for the environment, and a non-belligerent approach to conflicts. Therefore ECPI developed the Methodology to assess the government’s adherence to principles and to practices in aspects such as respect for human and labour rights; respect for the environment and anti-corruption. REGULATION The Methodology assesses the level of compliance of a government with a number of international treaties, conventions and best practices, which represent the international standard. IMPLEMENTATION The Methodology verifies the effectiveness of a Government in implementing national legislation compliant with international standards and in enforcing it efficiently.