SMS recognised for ESG commitments by global ratings agencies
SMS has been awarded an ‘A’ rating for its environmental, social and governance (ESG) credentials in 2020 by MSCI, an agency which measures the resilience of global companies to ESG risks.
MSCI uses a rules-based methodology to identify industry leaders in ESG and ranks them on how well they manage their risks, with ratings ranging from AAA to CCC.
On review of SMS’s ESG commitments in 2020, MSCI placed the company into the highest scoring range relative to global peers for its Corporate Governance, reflecting practices that are “well aligned with investor interests”. Notably, SMS was additionally placed in the upper quartile for its carbon emissions impact, with a carbon intensity “42% lower than industry average”.
‘Good environmental management’
In December 2020, SMS was also recognised for its commitment to tackling climate change, receiving an overall ‘B’ score by CDP, a non-profit organisation that rates companies on their disclosure and actions of environmental sustainability.
Organisations that receive a ‘B’ ranking by CPD are considered to practise “good environmental management” and take strategic business decisions to mitigate climate change. The score also recognises SMS’s commitment to reducing carbon emissions and developing the low-carbon economy.
Each year, CDP takes the information supplied in its annual reporting process and scores companies and cities based on their journey through disclosure, awareness, management, and ultimately environmental leadership.
In 2019, more than 9,600 companies reported through CDP the actions they had taken to protect climate, water security and forests. Corporate awareness through measurement and disclosure is considered essential to the effective management of carbon and climate change risk and is backed by the world’s top 500 global investors who request companies to disclose their progress annually through CDP.
Find out more about SMS and our mission to deliver the future of smart energy, or visit our Corporate section here.