Level 6 Approaches of Data analytics

Question 1

How is the non financial and financial information produced?

And how does it flow, raw data vs edited data

Answer 1

Question 2

How do investor use the data

1 Risk country

2 Industrial sector

3 operation

Answer 2

Question 3

Answer related to 1 asses data availability

Answer 3

Question 4

Answer related to 2 asess data quality

Answer 4

Question 5

What should ESG indicators oublished by the company do?

RELEVANCE

Answer 5

Reflect the long term sustainability strategy ndn the goals should go beyond business as ususal

have a direct link with the ESG Main value drivers of the company.

Be published (lack on an indicator is a sign of warning, liek breakdown of power utility comapny)

Question 6

What should ESG indicators oublished by the company do?

USABILITY

Answer 6

Transparency about the way the KPI is bulit

Easy to understand. Not a blackbox and many changing parts

Comparability across time and other sector

Question 7

What are the advantages of using raw ESG data

Answer 7

Advantages

Transperancy, felxible for analysts

Disadvantages

Can be difficult ot unerstand for a non specialist

Question 8

What are the advantages and disadvantages of using ESG indicators

Answer 8

An indicator may be more relevant to show teh features of a company

Disadvantages- Risk of a black box

Question 9

What is the concept of materiality

Answer 9

Question 10

According to the GRI Sustanability Reporting standards. (GRI initiative)

What should organizations focus their reporting items on?

Answer 10

Items that reflect the org siginificant economic, environmental adn social impacts on its business and/or goals.

Influence significantly the stakeholders assessment and decisions.

Question 11

Concret examples of meteriality

In banking sector Lack of human resource diversity=

Which one is the risk opporunities approach vs the impact approach

=1. Poorer access to miniorities in high value jobs

or
=2. poorer management of risks

Answer 11

1 Impact approach

2 Risk/opportunities appreach

Question 12

What is the materiality matrix?

Answer 12

A tool to define sector based ESG issues

A tool for dialogue witht he companies:ask new questions, understand new topics

A tool to cpmare different approaches, different corporate culture in the same sector.

Question 13

What are the three ESG global mega trends

Answer 13

Digital Transition

Energy and ecological transition

Demographic shifts.

See picture for more details

Question 15

What is a sector based ESG driver?

Answer 15

Example.
Banks vs digitalization vs commercial channels

Question 16

What is an ESG drived that have material impact on a conpanys reputation and employer brand?

Answer 16

example in a service company, a good employer brand image allows it to hire motivated people who compose the main asset of the comapny

Question 17

Identification oe ESG mega trends in the automotive sector

Answer 17

Question 18

Example of megatrend impacting the automotive sector. Example using the UN SDG goals

Answer 18

Question 19

Describe the concept double materiality?

Answer 19

The european commission advises comapnies against prematurely concluding that environmental and social issues are not material just becuse these risks are percieved to be long-term in nature