Overview of ESG 100 in 2020

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Written by VentureXchange

September 8, 2020

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For the third year running The Governance Group has assessed the sustainability reporting of the 100 largest companies listed on the Oslo Stock Exchange. On 8th September, The Governance Group published its annual analysis of ESG reporting – ESG 100 – rating the 100 largest companies on the Oslo Stock Exchange. Sustainability and ESG factors have long been perceived as a minor concern for investors. Many CEOs live by the assumption that a sustainability agenda conflicts with shareholder interests and that ESG consideration are immaterial to finance. It has become increasingly clear that this notion is outdated.

In this analysis, Scatec Solar was rated A, placing the company in the top category among companies excelling at ESG reporting. The analysis rates how well companies disclose relevant data. The analysis is a useful tool for corporations and investors alike to better understand the risks and opportunities related to ESG. The financial markets’ quest for ESG information has radically changed communication with investors on sustainability. For analysts to correctly evaluate a company there is a need for more information on ESG performance and the company’s governance approach for managing sustainability risks and opportunities. Therefore, TGT performed the mind depth ESG analysis and rated ESG 100 sustainability companies. 

Assessment criteria

The companies were analysed over four relevant areas. The Global Reporting Initiative – GRI, by assessing the degree to which the company reports to material topics in a systematic manner. Those do not include only impacts that have intermediate consequences from a business perspective, such as financial costs or a damaged reputation. The assessment also includes CDP rating, A to D, or F if they failed to report. Moreover, companies were also assessed as to whether their reporting complies with the recommendations of the TCFD with regard to governance, strategy, risk management and goal setting. Integration of UN Sustainable Development Goals has gained widespread international support, including from business.

Scatec Solar is an integrated independent solar power producer, delivering affordable, rapidly deployable and sustainable clean energy worldwide. While contributing to reducing emission is at the core of Scatec Solar’s business model, sustainability is also integrated into all operations and is closely monitored and reported. 

Key takeaway

This year’s analysis of the 100 largest companies on the Oslo Stock Exchange reveals that many companies lack a systematic approach to sustainability reporting. However, the trend is positive compared to last year. This is good news for investors and society at large – sustainability has become less noise and more substance.

The responsibility of identifying material sustainability risks and associated goals does not only belong to senior management. The company’s board should have access to information regarding key sustainability risks to the same extent as it does in other areas. By being transparent with regard to risk tolerance and goals related to material sustainability factors, the board will also aid investors in understanding the company. 

Read the full Stock Exchange report on The Governance Group. The analysis is a useful tool for corporations and investors alike to better understand the risks and opportunities related to ESG.

100 LARGEST COMPANIES ON OSLO STOCK EXCHANGE

CompanyScore
Borregaard4,0
Equinor4,0
DNB3,0-3,9
Entra3,0-3,9
Gjensidige3,0-3,9
Grieg Seafood3,0-3,9
Mowi3,0-3,9
Norsk Hydro3,0-3,9
Orkla3,0-3,9
SpareBank 13,0-3,9
Østlandet3,0-3,9
Storebrand3,0-3,9
Telenor3,0-3,9
Veidekke3,0-3,9
Yara International3,0-3,9
Aker BP2,0-2,9
Atea2,0-2,9
Bakkafrost2,0-2,9
Fjordkraft2,0-2,9
SalMar2,0-2,9
Lerøy Seafood Group2,0-2,9
Nordic Semiconductor2,0-2,9
Petroleum Geo-Services2,0-2,9
Scatec Solar2,0-2,9
Schibsted2,0-2,9
Wallenius Wilhelmsen2,0-2,9
AF Gruppen1,0-1,9
Akastor1,0-1,9
Aker1,0-1,9
Aker Solutions1,0-1,9
AKVA Group1,0-1,9
B2Holding1,0-1,9
BW LPG1,0-1,9
BW Offshore Limited1,0-1,9
Elkem1,0-1,9
Europris1,0-1,9
EVRY1,0-1,9
Golden Ocean Group1,0-1,9
Höegh LNG Holdings1,0-1,9
Kongsberg Automotive1,0-1,9
Kongsberg Gruppen1,0-1,9
Norway Royal Salmon1,0-1,9
Norwegian Property1,0-1,9
NRC Group1,0-1,9
Odfjell1,0-1,9
RAK Petroleum1,0-1,9
Salmones Camanchaca1,0-1,9
SpareBank 1 Nord-Norge1,0-1,9
SpareBank 1 SMN1,0-1,9
SpareBank 1 SR-Bank1,0-1,9
Subsea 71,0-1,9
TGS-NOPEC1,0-1,9
Tomra Systems1,0-1,9
Wilh. Wilhelmsen Holding1,0-1,9
XXL1,0-1,9
ABG Sundal Collier0,0-0,9
American Shipping CO0,0-0,9
Arcus0,0-0,9
Arendals Fossekompani0,0-0,9
Austevoll Seafood0,0-0,9
Axactor0,0-0,9
Bonheur0,0-0,9
Borr Drilling0,0-0,9
Bouvet0,0-0,9
DNO0,0-0,9
Fjord10,0-0,9
FLEX LNG0,0-0,9
Frontline0,0-0,9
Gaming Innovation Group0,0-0,9
Hexagon Composites0,0-0,9
IDEX0,0-0,9
Komplett Bank0,0-0,9
Kværnerk0,0-0,9
Magseis Fairfield0,0-0,9
MPC Container Ships0,0-0,9
NEL0,0-0,9
Nordic Nanovector0,0-0,9
Northern Drilling0,0-0,9
Norwegian Air Shuttle0,0-0,9
Norwegian Energy Company0,0-0,9
Norwegian Finans Holding0,0-0,9
NTS0,0-0,9
Ocean Yield0,0-0,9
Odfjell drilling0,0-0,9
Olav Thon Eiendomsselskap0,0-0,9
Otello Corporation0,0-0,9
Protector Forsikring0,0-0,9
Pareto Bank0,0-0,9
Sbanken0,0-0,9
Selvaag Bolig0,0-0,9
Shelf Drilling0,0-0,9
Solon Eiendom0,0-0,9
SpareBank 1 BV0,0-0,9
SpareBank 1 Ringerike Hadeland0,0-0,9
SpareBank 1 Østfold Akershus0,0-0,9
Sparebanken Møre0,0-0,9
Sparebanken Vest0,0-0,9
Spectrum0,0-0,9
Stolt-Nielsen0,0-0,9
The Scottish Salmon Company0,0-0,9
Treasure0,0-0,9

This year’s analysis of the 100 largest companies on the Oslo Stock Exchange reveals that many companies lack a systematic approach to sustainability reporting. However, the trend is positive compared to last year. This is good news for investors and society at large – sustainability has become less noise and more substance.

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