Evaluation

[vc_row][vc_column][vc_column_text]

Evaluación ALAS20 2015

Introduction

As part of the ALAS20 process, a Technical Evaluation of all the companies and investors nominated in the different corporate categories is carried out. This evaluation is carried out in English, is free and serves as a primary source of information for the Jury of ALAS20 that will decide the companies and institutions selected for their excellence in the public disclosure of information on sustainable development, corporate governance, investor relations, and responsible investment.

All companies and investors nominated in the corporate categories of ALAS20 are technically evaluated and receive the » ALAS20´s Nominee Report», which contains feedback with the partial results of their evaluation. ALAS20´s Nominee Report is free, is written in English language, and is exclusively delivered to the company or institution evaluated.

Vigeo Eiris: Global Research Partner of ALAS20

The Technical Evaluation of all companies and institutions nominated in the different corporate categories of ALAS20 is carried out independently by Vigeo Eiris, Global Research Partner of ALAS20. Vigeo and EIRIS are two Environmental, Social and Corporate Governance (ESG) rating agencies, which merged in December 2015 to create Vigeo Eiris, Europe’s leading rating agency, which has a significant network of partners in the World.

Vigeo Eiris is recognized in the responsible investment markets for the quality of its ESG ratings (4,000 qualified issuers). Its clients are investors who use these ratings to fuel their responsible investment strategies and processes. Each investor has their own vision and responsible investment strategy, therefore, Vigeo Eiris provides a wide range of services and products to support each investor in the design, implementation, feeding and tracking of their responsible investment strategy and processes.

Vigeo Eiris´s independence is guaranteed, among other processes, by its tripartite shareholder structure. The three Vigeo shareholder groups are: asset managers and pension funds, trade union federations and organizations or individuals recognized for their ability to measure social and environmental responsibility, and companies. This structure allows Vigeo Eiris to carry out companies evaluations in line with the visions and expectations of each of these three groups regarding the integration of the ESG factors in the strategy and management of the companies.

As an additional guarantee of the quality of its analyzes and research, Vigeo Eiris has established partnerships to share knowledge with several key organizations and institutions: UNICEF, the International Labor Organization (ILO), Transparency International, WWF, Oree, Ethibel Forum, UNI Global Union, and International Union of Food workers, among others.

Vigeo Eiris is affiliated to the United Nations Principles for Responsible Investment (UN PRI), to the various responsible investment forums Eurosif, Belsif, FIR, UKSIF, SpainSif, VBDO, ORSE, Kauri, Forum Finanza Sostenibile, and participates actively in the development of LatinSIF for Latin America. Vigeo Eiris actively contributed to the establishment of ISO 26000, with which Vigeo Eiris’ methodological evaluation method is 100% compatible.

Technical evaluation

1.Methodology of the Technical Evaluation process

Vigeo Eiris evaluates the companies and institutions nominated in ALAS20 based on their strategies and management actions, considering the full spectrum of their activities and geographical location, according to international reference objectives, using an information qualification matrix. The methodology of the Technical Evaluation has been formulated by Vigeo Eiris, and adapted jointly by Vigeo Eiris and GovernArt for its use in ALAS20.

The Technical Evaluation of Vigeo Eiris is based on the information publicly disclosed by the companies and institutions nominated in ALAS20, and the information obtained by Vigeo Eiris through the media review. Vigeo Eiris does not use in its analysis, and does not take into account in the Technical Evaluation, information that is secret or confidential, regardless of its form.

Vigeo Eiris bases its evluation on the capacity of companies and institutions nominated in ALAS20 to demonstrate leadership in the evaluated categories – sustainability, corporate governance, investor relations, responsible investment, and sustainability research – according to parameters that go beyond legal compliance. The result of the evaluation is a specialized opinion about the degree of leadership demonstrated in the evaluated categories. Vigeo Eiris uses internationally recognized standards and qualifications, which allows it to assess the organization’s approach to risk (reputation, cohesion, efficiency, and legal safeguards).

2.Vigeo Eiris´ Technical Evaluation Process

During the Technical Evaluation process, each company may be in direct contact with Vigeo Eiris´ analyst who conducted the evaluation. Vigeo Eiris considers a Technical Evaluation as valid for a minimum period of 18 months, so that companies and investors nominated in ALAS20 that have a Technical Evaluation valid within this period will not be re-evaluated, and the Jury of ALAS20 will consider as valid information The Technical Evaluation available on April 25, 2017.

The Technical Evaluation process of Vigeo Eiris consists of the following stages:

Stage 1: Recollection of corporate information.

Vigeo Eiris informs the company about the evaluation process, and requests information complementary to the one published in the specific areas of evaluation. Vigeo Eiris collects the company´s publicly available information, considering as public any information provided by the organization that is not secret or confidential.

Stage 2: Analysis of the information disclosed.

Vigeo Eiris analyzes the information publicly disclosed by the company, by the relevant stakeholders for the organizations, and by the media.

Stage 3: Draft of the final report sent to nominees.

After a review and analysis of the information disclosed, Vigeo Eiris sends a draft of the final report to the company, to review and identify any errors. This report may be accompanied by specific questions that emerged during the analysis of information disclosed by the company. In particular, Vigeo Eiris is attentive to receive the opinion of the company with respect to any controversies against it which have been identified during the compilation and analysis of the information disclosed by third parties.

Stage 4: Final Phase of the Technical Evaluation.

After the integration of the last comments of the company with respect to the previous stage, the evaluation is closed, and the «ALAS20´s Nominee Report» is sent to the company, which contains feedback with the partial results of its evaluation.

Delivery of the Technical Evaluation to ALAS20´s Jury

The background of the companies and investors nominated in ALAS20 will be given to the Jury of ALAS20. Members of the ALAS20 Jury can be reviewed here, ALAS20´s Jury Terms of Reference can be reviewed here.
ALAS20´s Jury meets to carry out an objective and exhaustive review of the background provided by the voting process, and the results obtained by the Technical Evaluation of the companies and investors nominated in ALAS20 by Vigeo Eiris, in order to take the decision on the winner of each category of ALAS20.
ALAS20´s results are published according to the following schedule.