Sustainability Report 2022
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4.3 VZ <strong>Sustainability</strong> Profile<br />
Environment, Society<br />
and Corporate<br />
Governance (ESG)<br />
Environment<br />
Society<br />
Corporate Governance<br />
ESG rating providers include different topics in their analysis and apply different criteria,<br />
which they weight or assess differently. This can lead to several rating providers rating the<br />
same company differently.<br />
Assessing portfolios<br />
The sustainability of investments reflected in the VZ <strong>Sustainability</strong> Profile is based on<br />
the three ESG criteria environment, society and governance (chart above). For this<br />
purpose, we take into account the ESG ratings of two providers that are global leaders<br />
in this field: MSCI ESG and Morningstar/Sustainalytics. ESG rating providers specialise<br />
in analysing sustainability data,<br />
which is why we rely on their assessment.<br />
The VZ <strong>Sustainability</strong> Profile<br />
combines the ESG ratings of these<br />
two providers in equal parts, making<br />
the base of our assessment broader.<br />
The VZ <strong>Sustainability</strong> Profile rates<br />
companies and countries with 1 to<br />
20 points. The higher the score, the<br />
better the ESG characteristics are<br />
rated. To determine the profile of an<br />
entire portfolio, the weighted average<br />
of the profiles of all individual<br />
very low<br />
<strong>Sustainability</strong>:<br />
high<br />
very high<br />
very low low medium high very high<br />
securities in the portfolio is calculated. The example above shows a portfolio with the<br />
sustainability profile «high».<br />
14 <strong>Sustainability</strong> report <strong>2022</strong>
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