1 the next generation of esg risk metrics copyright probus sigma lda 2010
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The Next Generation Of ESG Risk Metrics
Copyright Probus Sigma Lda 2010
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• Applies proprietary, standards based financial technology• Interoperability in 161 countries• Vigorous system wide, multi-stage third party audit• Based on established tried, tested and proven
methodologies• Low cost of implementation & operation• Provides level playing field for emerging economies• WTO, ITC, UNEP and GRI compliant• Integrity: Business model separates rating operations from,
consultancy, sales & distribution• Day one future proof regulatory compliant in all markets• Provides a common international ESG standard
The Sigma Platform
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• Developed by recognised environmental, social and governance standards experts
• Financial risk aspects developed by regulated investment management experts
• Built upon established, objective ISO based standards• Multi-applications, Investment, Insurance, Banking, etc.• Builds upon existing client in-house capabilities• Affordable, Scalable in emerging markets• Produces ESG risk metrics for any size of listed, non-listed
companies• Unique ability to accurately risk rate complete supply
chains• Ability to screen multi investable universes quickly
Basis of Construction & Development
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• Global financial institutions already trust and rely upon ISO standards for most financial transactions
• Innovation: ISO provides a common language and metrics, cuts time to market and ensures interoperability
• ISO provides day one regulatory compliance and reciprocity within 161 Global markets
• Provides empirical measurement of traditionally subjective areas
• Includes: Advanced public sector co-operation, United Nations Global Compact , UNPRI, United Nations framework convention on climate change, (UNFCCC)
• Sustainability : ISO’s range of standards provides practical tools for addressing all three dimensions of objective sustainable development, economic-social-societal
Why ISO Based? (1)
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• System improves emerging market access to global markets & facilitates trade-promotes ESG awareness
• ISO standards employed have in-built; transparency, wide stakeholder engagement, Government and NGO acceptance
• Reduces negative impacts and improves environmental performance
• ISO Standards and related conformity assessments currently impact 80% of world trade, (already embedded in the markets)
• Note: ISO is the leading multi-stakeholder, multi-sector, multi-national platform for developing consensus-based Inter-National Standards. The organisation is a network of national standards bodies from 160 countries in all regions of the world.
Why ISO Based? (2)
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• Sigma applies composite of ESG relevant ISO international standards
• Each component standard correlates to the determination of environmental, social and governance performance, (risk) within a chosen company, entire investable universe or supply chain
• Each component requires third party independent audit• Proprietary algorithm based methodology drives rating
procedure• Sigma is benign it makes no moral judgements or excludes
any particular industry it is entirely objective*• Sigma does not require self reporting from the company
*Sigma includes small percentage of subjective industry specific standards to allow for social justice best practice
How Does Sigma Work?
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A Selection of Test Market Comments
Copyright Probus Sigma Lda 2010
“This is the best concept I have seen in the market.”
(M N Services)
“This is the Holy Grail of sustainability”
(Marine Stewardship Council)
“Index performs better than all other Sustainability and SRI indices.”
(Euronext)
“Index performs better than almost all conventional
indices.” (Euronext)
“Index has a lower volatility
than all indices.”
(Euronext)
“Extensive study of the Sigma Methodology has proven a positive
correlation with share price performance.”
(ABN Amro)
“Maybe I should run my whole portfolio using this concept”
(Shell Pension Fund)
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Contact Details:
For further information please contact :
Chris Yates-Smith
Probus Sigma LdaTelephone: +351 211 924127Mobile (Portugal) +351 934622929Mobile (International) +44 [email protected]
Website: www.probus-sigma.eu
Copyright Probus Sigma Lda 2010