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Standard Ethics is an independent
sustainability reporting Sustainability reporting refers to the disclosure, whether voluntary, solicited, or required, of non-financial performance information to outsiders of the organization. Generally speaking, sustainability reporting deals with information concerning e ...
rating agency based in
London London is the capital and largest city of England and the United Kingdom, with a population of just under 9 million. It stands on the River Thames in south-east England at the head of a estuary down to the North Sea, and has been a majo ...
, known for its
sustainable finance Sustainable finance is the set of financial regulations, standards, norms and products that pursue an environmental objective. It allows the financial system to connect with the economy and its populations by financing its agents while maintaining a ...
and
ESG ESG may refer to : Groups * Election Support Group, an internationally sponsored organization analyzing and supporting the electoral process in Pakistan * ES Guelma, an Algerian football club based in Guelma * Escuela Superior de Guerra (Argenti ...
(Environmental, Social and Governance) studies. In 2001, it introduced a standardised approach to
sustainability Specific definitions of sustainability are difficult to agree on and have varied in the literature and over time. The concept of sustainability can be used to guide decisions at the global, national, and individual levels (e.g. sustainable livi ...
ratings. Methodologically, it separates
Corporate Social Responsibility Corporate social responsibility (CSR) is a form of international private business self-regulation which aims to contribute to societal goals of a philanthropic, activist, or charitable nature by engaging in or supporting volunteering or ethicall ...
( CSR) from sustainability, seeing the latter as a global and systemic approach whose definition is not given by a single entity but by international institutions. Standard Ethics promotes
sustainability Specific definitions of sustainability are difficult to agree on and have varied in the literature and over time. The concept of sustainability can be used to guide decisions at the global, national, and individual levels (e.g. sustainable livi ...
and
corporate governance Corporate governance is defined, described or delineated in diverse ways, depending on the writer's purpose. Writers focused on a disciplinary interest or context (such as accounting, finance, law, or management) often adopt narrow definitions th ...
with the ''Standard Ethics Rating'', an evaluation of how well the companies and sovereign nations respond to
corporate governance Corporate governance is defined, described or delineated in diverse ways, depending on the writer's purpose. Writers focused on a disciplinary interest or context (such as accounting, finance, law, or management) often adopt narrow definitions th ...
and sustainability, as indicated by guidelines published by the
United Nations The United Nations (UN) is an intergovernmental organization whose stated purposes are to maintain international peace and international security, security, develop friendly relations among nations, achieve international cooperation, and be ...
, the
Organisation for Economic Co-operation and Development The Organisation for Economic Co-operation and Development (OECD; french: Organisation de coopération et de développement économiques, ''OCDE'') is an intergovernmental organization, intergovernmental organisation with 38 member countries ...
, and the
European Union The European Union (EU) is a supranational political and economic union of member states that are located primarily in Europe. The union has a total area of and an estimated total population of about 447million. The EU has often been des ...
. The Standard Ethics Business Model is based on the ''applicant-pay model''. Like credit rating agencies, Standard Ethics sells solicited ratings, meaning it charges applicants for ratings. Once assigned, the rating and related analysis belongs to the applicant. Conversely, under the investor-pay model, agencies charge investors a fee for a list of companies that warrant investment.


Standard Ethics Rating

The Standard Ethics Rating (SER) is a Solicited Sustainability Rating (SSR). It is assigned upon a client's request through a direct and regulated bilateral relationship. It is a rating that intends to deliver an evaluation of the level of compliance by companies and sovereign nations in the field of sustainability and corporate governance as indicated by documents and guidelines published by the United Nations (UN), the Organisation for Economic Co-operation and Development (OECD), and The European Union (EU). Standard Ethics does not use weights and KPI-based analyses or indicators, but uses a method based on its own proprietary six-group variable algorithm. Standard Ethics links the rating to an evaluation done both at a qualitative and quantitative level of the potential reputational risks for a company. This process aims to protect corporate assets, particularly corporate reputation. Companies believe that EU, OECD and UN recommendations suggest future legislative requirements. Therefore, complying with this model could bring a competitive advantage. The methodological approach of Standard Ethics was first introduced in 2001 and its rating are based on a scale comprising 9 letter grades: EEE; EEE-; EE+; EE; EE-; E+; E; E-; F; where "EEE" stands for ‘above average’; "EE" for ‘average’; and "E" for ‘below average’.


Standard Ethics indices

Standard Ethics covers the major OECD Stock Exchange markets and the largest listed companies in those markets. In April 2019, Standard Ethics announced its SE European 100 Index, whose Index constituents have been selected according to their dimension, in terms of market capitalisation. To date (April 2019), Standard Ethics has created the following Indices: * SE European 100 Index (composed of the 100 largest European listed companies based on market capitalisation, with a Standard Ethics Rating). * SE Italian Index (40 companies within the FTSE-MIB index of the Italian Stock Exchange that have been assigned a Standard Ethics Rating). * SE Italian Banks Index (composed of all Italian banks listed on the Italian Stock Exchange with a Standard Ethics Rating). * SE UK Index (composed of the 40 largest British listed companies with a Standard Ethics Rating). * SE French Index (composed of the 40 largest French listed companies with a Standard Ethics Rating). * SE German Index (composed of the 30 largest German listed companies with a Standard Ethics Rating). * SE Belgian Index (composed of the 20 largest Belgium listed companies with a Standard Ethics Rating). * SE Spanish Index (composed of the 30 largest Spanish listed companies with a Standard Ethics Rating). * SE Dutch Index (composed of the 30 largest Dutch listed companies with a Standard Ethics Rating). * SE Swiss Index (composed of the 30 largest Swiss listed companies with a Standard Ethics Rating). * SE European Banks Index (composed of the 40 largest European listed banks with a Standard Ethics Rating). * SE Best in Class European Index (composed of the 30 European list companies with the highest Standard Ethics Rating). * SE US Index (composed of the 20 largest US listed companies with a Standard Ethics Rating). The way Standard Ethics reports on its indices is based on full disclosure.


National Ratings

This is the situation for sovereign nations with a Standard Ethics Sustainability Rating as of April 2019. In 2013, Standard Ethics was the first to assign the rating to the Vatican City State.


References

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External links


Official Website
Social responsibility organizations