Financial performance is key to rate top players among a sector. Nowadays, more and more ESG (environmental social and governance) factors are also taken into account in such rankings, stock indices and ratings. Living proof: Gartner has included CSR a scoring criterion in its methodology for the Supply Chain Top 25!
CSR represents 10% of the score!
In the past method, CSR was not taken into account. Now the weight of financial criteria in the total score has decreased to include a share of 10% for the CSR score.
What is included in the CSR score?
Gartner based its scoring on third party public available data. The methodology is not publicly available. However, Gartner states “The Corporate Social Responsibility (CSR) component score assesses each company’s commitment to and proficiency in running socially and environmentally responsible supply chains. Using trusted third-party sources, points are awarded if companies produce publicly-available sustainability reports using accepted standards and if certain expert third parties recognize their exceptional performance in social and environmental responsibility.” DFGE would guess that such standards might include the standards we usually help companies support, such as UNGC, GRI, CDP among others. The full methodology can be ordered here: https://www.gartner.com/doc/3262717/introducing-score-csr-sustainability-performance
DFGE recommendations: use CSR international standards
- Rankings and ratings are based in public available information. We recommend companies to be transparent and publish their CSR reports as well as indicating their commitments.
- Ranking and ratings rely on international standards. We suggest to companies to use such international standards. Indeed, they can be reused to answer various stakeholder requests. Also, resorting such standards reinforce the standards, and also the credibility of our company. By committing externally, your company shows support to the bigger sustainability pictures.
If you want to have more information on CDP, please consult our webpage. For UNGC, you can go here. For GRI we invite you to read this webpage. Read more on Gartner new methodology here or on their index.
DFGE is happy to help you answer such requests and comply with international standards.