Sustainability ratings are not only a decision-making basis for institutional investors and clients, but also help to continuously review sustainability activities and supplement them as needed. The agencies' evaluation criteria reflect both the expectations of our relevant stakeholders and new issues that could become relevant for Covestro in the future.
Covestro has received the highest rating of "Gold" from the international rating agency EcoVadis for its sustainability performance. The categories evaluated are "Environment", "Labor & Human Rights", "Ethics" and "Sustainable Procurement".
In the most recent survey, the company was again able to significantly improve its score by seven points compared to the last evaluation in 2016. Ranking 80 out of 100 points, Covestro is among the one percent of all companies surveyed that belong to the absolute top group. A total of 55,000 companies were surveyed by EcoVadis, with an average score of 44.6 points.
Many of our major customers have already abandoned their own surveys and are relying instead on the EcoVadis rating. Covestro also has the same survey conducted for the sustainability performance of its suppliers. This is part of the "Together for Sustainability" initiative - an alliance of leading chemical companies with the aim of establishing a global standard for sustainable supply chains in the industry.
Covestro recently received recognition from ISS ESG, one of the world's leading research and rating agencies for sustainable investments in ESG (Environment Social Governance), which was formerly known as Oekom Research. Our company has received awards for its climate change strategy, certified integrated management system, excellent plant and transport safety practices and good supply chain management in terms of labor regulations, working conditions and environmental aspects.
On top of that, ISS ESG classified ESG Covestro in the "Premium" category (B-). The "Premium" status is awarded to companies with a good rating as part of an evaluation process that takes both social and ecological aspects into account. This means that as a leading company in the chemical industry, we rank among the best companies in our industry.
Sustainalytics is a leading global provider of sustainability research and analysis, specializing in the analysis and evaluation of the sustainability performance of companies and countries. Sustainalytics uses the so-called ESG approach, which encompasses the areas of Environment, Social and Governance.
According to the latest Sustainalytics evaluation (April 2019), Covestro achieved an overall ESG score of 77 out of 100 and was rated "Outperformer" among the companies evaluated. Overall, Covestro ranked 8th out of 133 chemical companies evaluated by Sustainalytics.
MSCI ESG Research is the world's largest provider of environmental, social and governance (ESG) sustainability analyses and ratings. The sustainability products and services of over 1,000 clients worldwide are used to integrate ESG factors into the investment process.
Just like last year, Covestro scored with an "A" in the MSCI ESG rating (on a scale of AAA-CCC).
In November 2016, Covestro was included in the Euronext Vigeo Index “Eurozone 120” (the 120 most advanced companies in the Eurozone). This result was once more confirmed in June 2018. The index distinguishes between companies with the most advanced environmental, social and governance performance.
Vigeo eiris is a research and rating agency that assesses companies in terms of their sustainability efforts. The companies listed in this index achieved the highest score in the review of up to 330 indicators and were evaluated by the agency based on the Equitics methodology. Companies are excluded from this index if they are subject to critical or recurring controversy and do not provide visible evidence of corrective action or interaction with stakeholders.
Since December 2016, Covestro AG has been part of the FTSE4Good index series. In June 2018, Covestro again qualified to remain in the index.
The FTSE4Good index series is designed to help investors integrate environmental, social and corporate governance (ESG) aspects into their investment decisions. The index identifies companies that are better at managing ESG risk and uses this as a basis for index funds, structured products and performance benchmarks. ESG valuations are used by investors who incorporate ESG aspects into their investment decisions or as a framework for corporate involvement and management.