13 Dec. 2010 | Comments (0)
- Does the company specifically disclose its Greenhouse Gas (GHG) emissions?
- Are specific targets for reducing environmental exposures (e.g. GHG emissions, water use, hazardous waste, toxins, landfill, degradation, spills, etc) disclosed?
- Does the company have in place a code of conduct (or equivalent) on environmental issues?
- Has it been alleged by a responsible party that the company caused or substantially contributed to serious environmental damage within the last three years?
“Real fans of British prog rock band Genesis out there will know that that’s when Genesis went catastrophically downhill. Chart success regardless. Phil Collins is all very well, but you can’t lose Steve Hackett AND Peter Gabriel without fatally injuring a group’s talent base. With The Corporate Library, however, the direct opposite is the case. We were two with GMI, and then there were three with Audit Integrity. And if you add Audit Integrity’s international forensic accounting analysis and accounting risk models, tools and technology to the international ESG data and analysis of GMI to The Corporate Library’s domestic capabilities, talent base, and research capabilities then you have a winning combination.”The interesting issue for companies and boards is that all three governance research and ratings companies have different ratings metrics. The challenge for companies will be whether or not the new GMI can capture more of the marketplace to change the viewpoint of many directors that ISS is the one powerful player to worry about. That has been the mantra at many corporate governance conferences I have attended: “Beware ISS, they may vote you off the board if you abide by their policy voting guidelines.”