Corporate Governance

Shearman & Sterling LLP The Climate Changes for ESG | 11 ISS E&S Disclosure QualityScore ISS E&S Disclosure QualityScore provides a platform to measure the quality of corporate disclosure on environmental and social issues, including sustainability governance and climate change. Disclosure practices are assessed based on industry groups, and specific environmental and social risks are identified by industry and multi-stakeholder initiatives as well as reflected by other ESG standards such as GRI, SASB and TCFD. Rating scores are based on decile scores of 1–10 that analyze raw score calculations of peer companies within the same industry group. ISS E&S Disclosure Quality- Score provides a score that measures the depth and extent of disclosure of a company's environmental and social risks and preparedness, as opposed to ranking its ESG initiatives and actions taken. MSCI ESG Research Launched in 2010, MSCI ESG Research evaluates ESG risks, including daily monitoring of 2,100 media publications and regular updates of public documents and third-party data sets. Its ESG Ratings cover over 6,800 companies. Rating scale is from AAA to CCC, which is based on an assessment of 37 ESG key issues. Sustainalytics Company ESG Reports Sustainalytics was formed in 2008. Currently, its ESG ratings cover 11,000 companies. Sustainalytics focuses on financially material risks to company performance, provides an assessment of how well the company is managing these risks and provides absolute ratings that enable comparisons across industries and companies at the overall ESG and issue-specific risk levels. Rating scale is out of 100, ESG indicators are organized by each industry and each indicator is given a specific weight depending on each industry to assess the most financially material risks. Thomson Reuters ESG Research Data (Refinitiv) Refinitiv provides ESG data and scores for over 7,000 global companies with data since 2002 and analyzes based on over 400 metrics. Rating scores are based on percentile rank scores that assess ESG performance across 10 main themes (emission, environmental product innovation, human rights, shareholders, etc.), including data-driven weights placed on certain ESG indicators and an overlay that discounts scores for impact of significant ESG controversies specific to a company or industry.

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