Level 6 Approaches of Data analytics Flashcards
How is the non financial and financial information produced?
And how does it flow, raw data vs edited data
How do investor use the data
1 Risk country
2 Industrial sector
3 operation
Answer related to 1 asses data availability
Answer related to 2 asess data quality
What should ESG indicators oublished by the company do?
RELEVANCE
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)
What should ESG indicators oublished by the company do?
USABILITY
Transparency about the way the KPI is bulit
Easy to understand. Not a blackbox and many changing parts
Comparability across time and other sector
What are the advantages of using raw ESG data
Advantages
Transperancy, felxible for analysts
Disadvantages
Can be difficult ot unerstand for a non specialist
What are the advantages and disadvantages of using ESG indicators
An indicator may be more relevant to show teh features of a company
Disadvantages- Risk of a black box
What is the concept of materiality
According to the GRI Sustanability Reporting standards. (GRI initiative)
What should organizations focus their reporting items on?
Items that reflect the org siginificant economic, environmental adn social impacts on its business and/or goals.
Influence significantly the stakeholders assessment and decisions.
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
1 Impact approach
2 Risk/opportunities appreach
What is the materiality matrix?
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.
What are the three ESG global mega trends
Digital Transition
Energy and ecological transition
Demographic shifts.
See picture for more details
What is a sector based ESG driver?
Example.
Banks vs digitalization vs commercial channels
What is an ESG drived that have material impact on a conpanys reputation and employer brand?
example in a service company, a good employer brand image allows it to hire motivated people who compose the main asset of the comapny
Identification oe ESG mega trends in the automotive sector
Example of megatrend impacting the automotive sector. Example using the UN SDG goals
Describe the concept double materiality?
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
