Sustainability indices and ratings: important guides for investors 3 minutes spent reading
Environment

Sustainability indices and ratings: important guides for investors

Christopher Eberl
Christopher Eberl is editorially responsible for the topics on the blog as well as for the apprentice website. With his stories he provides deep insights into the diverse world of the voestalpine Group.

voestalpine’s listing in the FTSE4Good and our positive ratings are proof of our sustainable performance.

Companies’ environmental, social, and governance practices are becoming a priority for investors.Companies are increasingly paying attention to sustainability indices which are often based on the analysis of environmental, social, and governance factors, so-called ESG criteria. Only companies judged to be leaders in their industries according to long-term economic, ecological, and social criteria are included in these stock exchange listings.

 

voestalpine is represented in one of the most important sustainability indices on the international stock exchanges.

voestalpine is represented in one of the most important sustainability indices on the international stock exchanges.

 

We have been listed in the FTSE4Good since 2020. This index is compiled by FTSE Russell, a subsidiary of the London Stock Exchange Group. It rates companies in the categories of environmental management, climate change, human and labor rights, supply chain, and anti-corruption. That means we are included in one of the key sustainability indices on the international stock exchanges. This is important for two reasons:

  1. The listings reflect how the outside world views our corporate activities and confirm our pursuit of sustainability.
  2. The sustainability indices also function as a guide for investors who want to make sustainable investments.

Ratings becoming increasingly important

In addition to indices, investors, analysts, and increasingly customers, are paying attention to special ratings to form an opinion about a company’s sustainability performance. Either the Group as a whole or individual locations are evaluated according to ESG criteria. voestalpine enjoys consistently positive evaluations in the key sustainabilty ratings, including Sustainalytics, EcoVadis, CDP, MSCI, NQC or S&P.

 

voestalpine has been regarded as the industry's environmental and efficiency benchmark for decades.

voestalpine has been regarded as the industry’s environmental and efficiency benchmark for decades.

 

Leadership level in climate protection

We have been publishing our environmental data within the framework of the Carbon Disclosure Project (CDP) since 2016. In 2022 we achieved the Leadership level in the CDP climate protection rating, with an A- rating. This recognizes companies which have adopted coordinated climate protection measures and implemented best practices. This evaluation places us among the top 22 percent of all companies in our reference group. We also performed well in the highly demanding category of water consumption, achieving a B score in the Water Security score.

Our long-term engagement is also reflected in the Score Reports of the past years in which we have been able to demonstrate continual improvement.

Demand for transparent information

In order to score high in the ratings and ultimately be included in the indices, detailed information is required on numerous sustainability indicators. Consequently, information about a company’s sustainability performance must be transparent and verifiable.

"The listing of voestalpine in the FTSE4Good and our positive ratings confirms our environmental, social affairs, and governance practices."
Claudia Korntner, Head of Corporate Responsibility
Claudia Korntner, Head of Corporate Responsibility

Claudia Korntner, Head of Corporate Responsibility

 

Being included in one of the world’s most important sustainability indices, FTSE4Good, and our good ratings performance, enables us to make a strong case for private shareholders and institutional investors interested in sustainable investments.

Christopher Eberl