The Aequum ESG Certificate integrates economic responsibility with sustainability
What is it?
The Aequum ESG Certificate is a corporate responsibility indicator that combines Environmental, Social and Governance criteria to promote a socially responsible economy.
The Aequum ESG Certificate provides an objective assessment to companies and organizations that facilitates access to private financing and public tenders. Likewise, the Aequum ESG Cerficate allows companies’ stakeholders to track their responsibility level over time.
Our set of indicators is linked to a control system that measures the company’s performance compared sectorially and across the economy.
ESG integration is the Socially Responsible Investment strategy that has grown the most in the last years worldwide. This system will change the paradigm of balance sheets by accounting for elements beyond traditional risk assessments. This will gradually move companies forward towards a more socially responsible behavior.
Themes
The Aequum ESG Certificate comprises a set of representative indicators of each theme.
Environment
Achieving sustainability while preventing the most harmful environmental impacts:
— Greenhouse emissions
— Pollutants
—Energy efficiency
—Liquid spills and wastes
—Innovation
—Use of resources
Social
Guaranteeing the rights of workers and consumers:
— Labour
— Gender
— Human rights
— Social responsibility
Governance
Democratising management and decision-making processes:
— Government bodies
— Property management
— Transparency
Controversies
Failure to comply with one of the indicators included in the Controversies pillar will lead to the suspension of the entire certification procedure.
— Cases of corruption
— Cases of tax fraud
— Work-related Accidents
— Vulnerating Human rights
— Annual expenses in fines
— The Indicators
The total number of indicators is 57, of which 30 are quantitative and 27 are qualitative. When classified into themes 18 belong to the Environmental theme, 22 to the Social, 11 to the Governance and 6 are indicators of the Controversies theme.
— Final Report
The final result of the certification is a report, summarized in the image below. ESG quality scores are expressed in a letter that goes from A+ to D-, with A+ indicating the highest quality, and D- is the lowest quality level.
The Aequum ESG Certificate allows to know the relative performance of the company in its sector as well as across sectors.
The ESG Certification report also includes a section of recommendations that will allow the company to improve its ESG performance in the future.
1. General Rating
General rating obtained by the company on a yearly basis.
2. Thematic Rating
Different rating for each ESG pillar in the certification year. It will allow a detailed monitoring of the performance related to the different pillars.
3. Cross-sector performance
Performance and yearly progress relative to the other certified companies pf the economy.
4. In-sector performance
Performance and yearly progress relative to other certified companies in the same sector.
5. Recommendations
Recommendations will be made to the company to help it improve its ESG performance in the next certification exercise.
The Model
The reliability of the ESG Certification depends on preventing any conflict of interests in the certification process. A two tier structure will serve that purpose:
— ESG Agency
This Agency will provide accreditation to Certification companies to use its method. The Agency will develop and update its methodology, which includes the calibration of the indicators, the provision of a protocol and infrastructure for the effective completion of the certification process, and the offer of guidance to private and public agents on the application of its methodology.
— Certification authorities
Certification authorities are companies that will certify enterprises that want to obtain the Aequum ESG Certification, which will be done relying on the methodology and infrastructure provided by the ESG Agency.
How is it useful to me?
Companies
1
Companies need funding and success in public procurement
2
A certification authority will provide its certification services relying on the Aequum ESG method
3
This certification authority will have been accreditated by the Aequum ESG Agency
4
Companies will be able to access new financing and public procurement
1
Companies need funding and success in public procurement
2
A certification authority will provide its certification services relying on the Aequum ESG method
3
This certification authority will have been accreditated by the Aequum ESG Agency
4
Companies will be able to access new financing and public procurement
Investors
1
Investors look for new instruments to make profitable investments with positive ESG impact
2
The Aequum ESG Agency will provide information of firms that have obtained the ESG Certificate to investors
3
The ESG Certificate will be incorporated as a risk assessment criteria
4
Investors will work for the common good while obtaining a fair return for their investment
1
Investors look for new instruments to make profitable investments with positive ESG impact
2
The Aequum ESG Agency will provide information of firms that have obtained the ESG Certificate to investors
3
The ESG Certificate will be incorporated as a risk assessment criteria
4
Investors will work for the common good while obtaining a fair return for their investment
Administrations
1
Public administrations need efficient tools to assess ESG criteria in public procurement
2
They can contact the ESG Aequum Agency to obtain guidance on how to include the ESG criteria in a public tender
3
The ESG Certificate may be incorporated in tenders as a condition to access tenders
4
Public procurement will improve its ESG impact without further administrative costs
1
Public administrations need efficient tools to assess ESG criteria in public procurement
2
They can contact the ESG Aequum Agency to obtain guidance on how to include the ESG criteria in a public tender
3
The ESG Certificate may be incorporated in tenders as a condition to access tenders
4
Public procurement will improve its ESG impact without further administrative costs
Certification authorities
1
A certification company wants to become a certifier of the Aequum ESG Certification
2
The Aequum ESG Agency will grant accreditation to become an ESG Certification authority
3
ESG Certification authority will proceed to implement the protocol with companies that demand their services
4
The Certification authority will grant the ESG Certificate in agreement with the Aequum ESG Agency
1
A certification company wants to become a certifier of the Aequum ESG Certification
2
The Aequum ESG Agency will grant accreditation to become an ESG Certification authority
3
ESG Certification authority will proceed to implement the protocol with companies that demand their services
4
The Certification authority will grant the ESG Certificate in agreement with the Aequum ESG Agency
ESG Agency
C/Pallars 85 2-3
08018 Barcelona
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