Transparency Matrix ARISTA TM 3 - aristastandard.org 2015/VigeoARISTA3...ARISTA Transparency Matrix 3.0 validity certificate: ... ALCAN, ALCATEL, ALLIANZ VIE, ARCE-LORMITTAL, AVENTIS

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Association for Responsible Investment Services

ARISE asbl Rue du Progrès 333/8,

B-1030 Brussels, Belgium T: +32 (0)2 206 11 14, W: www.aristastandard.org, E: [email protected]

Transparency Matrix ARISTA TM 3.0®


A GENERAL INFORMATION

RESEARCH METHODOLOGY

A01 Name of core methodolog(y)ies subject to Transparency Matrix (TM) Equitics

DETAILS OF RESEARCH GROUP

A02 Logo

A03 Name of research organisation Vigeo

A04 2nd name, slogan, … Vigeo Rating

A05 Head offices Bagnolet, France (inc. research activities)

A06 Other offices Brussels, Belgium (inc. research activities); Milan, Italy (inc. research

activities); Casablanca, Morocco (inc. research activities); Tokyo, Japan; London, United Kingdom

A07 Legal status of organisation SAS

A08 Registration no. 43 055 215 Immatriculation au Registre du Commerce et des Sociétés (Bobigny)

A09 Date of incorporation 2002

A10 Legal address Les Mercuriales 40 rue Jean Jaurès 93170 Bagnolet – France

A11 Office address Vigeo France: Les Mercuriales 40 rue Jean Jaurès 93170 Bagnolet -

France

Vigeo Belgique: Rue du Progrès 333/ B7 1030 Bruxelles - Belgique

Vigeo Italia: Via Settala, 6 - 20124 Milan - Italia

Vigeo Maroc Technopark Route de Nouacer - BP 16435 Casablanca - Ma-

roc

Vigeo United Kingdom : Broad Street House, 55 Old Broad Street, London,

EC2M 1RX

Vigeo Japon: 2-8-8 Nakamachi Meguro-ku, 153-0065 Tokyo, Japan

A12 Telephone France: +33 1 55 82 32 40

Belgium: +32 2 206 67 91

Italy: +39 02 277271

Maroc: +212 529 00 38 83

United Kingdom: +44 (0)20 3402 6401

Japan: +81 3 5721 6159


A14 General email [email protected]

A15 Website www.vigeo.com

A16 Annual reports and audited accounts are available annual activity report and independently audited accounts are available

KEY CONTACTS

A17 President/Chairman Nicole Notat

A18 General Director/CEO Nicole Notat

A19 Names of Directors + affiliations + executive/non-executive Chairwoman: Nicole Notat

For the companies:

Danone, represented by M. Jean-René Buisson

Orange, represented by Bruno Mettling

Airbus Group, represented by Pierre de Bausset

For the financial managers:

BPCE, represented by M. Nicolas Chatillon and Pierre Foucry

Amundi represented by M. Pierre Schereck

For the European trade union organizations and NGOs:

Confédération Française Démocratique du Travail, represented by Mme

Marylise Léon

Confédération des Syndicats Chrétiens

Forum Ethibel, represented by M. Dirk Van Braeckel, Belgium

For the independent personalities:

M. Giulio Franzinetti

M. Eddy Laurijssen

M. Dominique Orban

Mme. Marie-France Walbaum

Transparency International, represented by Mme. Anne-Marie Ducroux

A20 Research Director Emilie Béral, Vigeo Rating Research Director, [email protected]

A21 Quality Manager Emilie Béral, Vigeo Rating Research Director, [email protected]

Manon Jolivet, Quality Manager, [email protected]

Albert Charlier, [email protected]

A22 Quality Assurance Responsibility Fouad Benseddik: [email protected]

A23 Compliance Officer for QS Fouad Benseddik: [email protected]

A24 Contact name for TM Manon Jolivet, [email protected]

A25 Other key persons Jordi Lesaffer: [email protected], Research Manager Basic Re-

sources, Site manager in Brussels

Cristina Daverio: [email protected], Research Manager Finance,

Site manager in Milano

Nikki Gwiiliam: [email protected], Research Manager Food &

mailto:[email protected]

http://www.vigeo.com/










Health

Pierre-Yves Le Stradic: [email protected], Research Man-

ager Energy & Utilities

Hélène Drouet: [email protected], Research Manager Industry

Laila Ait Hassoun: [email protected] Research Manager Ser-

vice, Site Manager Casablanca

Nada Zouag: [email protected], Research Manager TMT

Vincent Brouchet:[email protected]: General Secretary, re-

sponsible for IT and data storing systems

Elisabeth Le Loir: [email protected] : responsible for communica-

tion

Aicha Es Stah: [email protected]: responsible for human re-sources

STRUCTURAL, OPERATIONAL OR STRATEGIC LINKS, ALLIANCES, MEMBERSHIPS

A26 Members None

A27 Shareholders 1. Asset and pension funds managers: 46.86%

2. Trade unions: 26.74%

3. Corporations: 26.40%

The decision to involve corporations as Vigeo shareholders is done and

motivated by the search for a pluralist body of shareholders who would

guarantee the agency’s independence in the final analysis.

The involvement of these shareholders in the creation of Vigeo has

demonstrated their adherence to the launch of a European-wide CSR rat-

ing agency and to the development of a market standard, thanks to a

production department that combines a professional approach with quality

and R&D.

1. Board sub-group of Asset and Pension Fund Managers (55%):

Amundi, AG2R, BPCE (35.01%), Caisse des Dépôts et Consignations, Con-

federacion Espanola de Cajas de Ahorros, Crédit Coopératif, Candriam

Luxembourg, Inter Expansion (Ionis); Lazard Frères Gestion, MACIF,

Ofivalmo, S2G 2. Board sub-group of Trade unions, persons or entities recognised for

their skills to measure environmental and social responsibility (19%):

CFDT Confédération Française Démocratique du Travail (France)

CC.OO Confederación Sindical de Comisiones Obreras (Spain)

CISL Confederazione Italiana Sindacati Lavoratori (Italia)

CSC Confédération des Syndicats Chrétiens (Belgium)








UGT Union General de Trabajadores (Spain)

UGTP União Geral de Trabalhadores (Portugal)

Forum Ethibel (Belgium) 12%

Federico Versace

Fouad Benseddik

Vincent Brouchet

Nicole Notat

3. Board sub-group of Companies (26%):

According to the Vigeo Group statutes, a corporation may enter the Vigeo

Group capital up to 2%, and a maximum of 45% all together.

AIR France, Airbus, AIRBUS Group, ALCAN, ALCATEL, ALLIANZ VIE, ARCE-LORMITTAL, AVENTIS Pharma, AXA, BNP-Paribas, CARREFOUR, COGAC (GDF), Crédit Lyonnais, DANONE, Edev (EDF), Financière LAFARGE, Or-ange, HSBC, Manpower, Mc Donald's, RENAULT, RHODIA, SAINT-GOBAIN, SCHNEIDER ELECTRIC, Solvay SA, SNCF, SPIE, SUEZ, TECHNICOLOR, THALES, ROYAL BANK OF SCOTLAND, TOTAL, VEOLIA, VINCI

A28 Significant interests in other companies None

A29 Structural co-operations Forum Ethibel

A30 Relevant memberships EUROSIF; BELSIF, PRI, KAURI, SPAINSIF, FIR, UK SIF, VBDO, Finanza Sostenibile


WORKFORCE (referring to research workforce only)

A31 Total workforce of research unit # 75 - 80

A32 Total workforce research unit in FTE 73,21

A33 Total # analysts in # 58 - 65

A34 Total # analysts in FTE 56,21

A35 Nationalities # 16

A36 Languages # 15

A37 Backgrounds # 100% Master level (Bac +5)

A38 Diversity (female/male) 66% female

GENERAL PROFILE

A39 General strategy: research [positioning, policy]

Vigeo has established itself as the leading European expert in the assess-ment of companies and organisations with regard to their practices and performance on environmental, social and governance (“ESG”) issues.

A40 General strategy: commercial [positioning, policy]

Vigeo rating provides products and services for investment decisions for investors and asset managers. Vigeo Enterprise provides products and services for management decisions for companies and local authorities.

A41 Summary description [mission, activities]

From Vigeo Website: http://www.vigeo.com/csr-rating-agency/en/notre-

mission

Vigeo assesses both the performance of companies and organisations and their level of CSR management. We assess the degree to which companies and public corporations take into account environmental, social, societal and corporate governance objectives, which constitute risk factors for them in the definition and im-

plementation of their strategy and policies. Using our analysis, it is possible to:

- Evaluate the level of commitment shown by organisations towards all

CSR or sustainable development goals

- Identify any risks incurred by the company or organisation in this area

- Evaluate their level of management

Who are our services aimed at?

We provide our partners with sound mechanisms for decision-making and

specific operational management tools:

- We provide SRI analyses for investors and asset managers on 2,700

European, Asian, North American and Emerging markets issuers in order

to assist them in selecting their portfolios

- We perform social responsibility audits for companies to provide assis-

tance with their strategic management

- We carry out sustainable development audits for local authorities to pro-

http://www.vigeo.com/csr-rating-agency/en/notre-mission



vide guidance for subsequent improvement

The solid quality of our methodology is widely recognised.

A42 History [background, initiators, ...]

2002: Vigeo was founded as a limited company under French law. Vigeo took over the activities of Arèse, the 1st SRI rating agency in France. 2003: Launch of CSR Audit business; 2004: Opening of the Casablanca branch; 2005: Integration of the Belgian company Stock at Stake, the leading SRI rating agency in Belgium. Stock at Stake became Vigeo Bel-gium; 2006: Integration of the Italian company Avanzi SRI Research, the

leading CSR rating agency in Italy. Avanzi SRI Research became Vigeo

Italia. 2008: Partnerships with UNI and Finergie. 2009: Partnership with Novaster. 2011: Opening of the London office.

A43 Key words or key concepts or characterisations or best practices or strengths Independence, Professionalism, Transparency, methodology based on in-ternationally-recognized standards, Innovation, Commitment, Proximity and reception


B INTEGRITY AND INDEPENDENCE

INTEGRITY PRINCIPLES AND ETHICAL COMMITMENTS (GROUP)

B01 A Group Code of Conduct, stating the integrity principles and rules and regulations while undertaking research, is available Yes

B02 ARISTA 3.0® has been signed on board level Yes

B03 Signature of ARISTA 3.0® has been communicated to all members, shareholders, staff Yes

B04 Signature of ARISTA 3.0® has been communicated to customers and other stakeholders Yes

B05 An integrity compliance officer has been designated Yes

INDEPENDENCE + CONFLICTS OF INTEREST (GROUP)

B06 An Independence Policy is available Yes

B07 Methods for avoiding conflicts of interest are demonstrated, including on the level of Board of Directors Yes

B08 Procedures ensuring that external persons or organisations cannot influence the course and results of research are available Yes

B09 Material evidence on how this is established and operational is available Yes

B10 An annual Independence Report is available Yes

B11 Sources of revenue and income have been disclosed to the verifier Yes

INTEGRITY AND CONFLICTS OF INTEREST (STAFF)

B12 A Code of Conduct and guidance for all staff is available Yes

B13 The code has been signed by all staff abiding by code Yes

B14 The code is included in staff training Yes

B15 The way the integrity policy and system is implemented with staff has been showed Yes

B16 Procedures are implemented to ensure the reporting by analysts of any conflict of interest Yes

B17 A line manager, compliance officer or quality manager has been designated for follow-up Yes

CONFIDENTIALITY

B18 A Confidentiality Statement covering confidentiality of received information is available Yes

RESEARCH GROUP'S SERVICES AND METHODOLOGIES

Research group offers paid consulting services to:

B19 - Companies that are subject to research (other than explaining methodology etc.) Yes but through a specific department, separated from the re-search unit

B20 - Companies that are not subject to its research Yes but through a specific department, separated from the re-search unit

B21 - Financial clients No

B22 - NGOs or other stakeholder groups (other than selling investment services) No

Research group offers RI research products to:

B23 - Companies that are subject to research Yes Sector studies, thematic studies, Benchmark, Open CSR Profile through a specific department, separated from the

research unit


B24 - Companies that are not subject to research Yes Sector studies, thematic studies through a specific depart-ment, separated from the research unit

B25 - Financial clients Yes

B26 - NGOs or other stakeholder groups Yes

C QUALITY MANAGEMENT SYSTEMS

ORGANISATION

C01 A document defining the responsibilities and reporting structure of the organisation is available Yes

C02 A manager has overall responsibility that research/assessment are carried out in accordance to QMS (+ ARISTA 3.0®) Yes

C03 Internal control is performed according to the Group's Quality Management System Yes

C04 A document control system is in place Yes

C05 Regular data back-up systems are employed Yes

C06 Safeguards against the irretrievable loss of data are contained in the Group's Disaster Recovery Plan Yes

QUALITY MANAGEMENT SYSTEMS

C07 A QMS Statement, defining policies, commitments, objectives and instruments of control, is available Yes

C08 A Quality Manual regarding all research/assessment processes is available Yes

C09 A Quality Manager is designated with defined authority and responsibility for the quality management system Yes

C10 The QMS is updated and reflects the development of research within the group Yes

C11 The QMS has been approved, and is reviewed at appropriate intervals by senior management Yes

QUALITY IMPROVEMENT

Quality improvements cover:

C12 - Relevance or use of indicators, criteria or topics of research (relevance) Yes

C13 - Development & review of methodology and criteria (completeness) Yes

C14 - Integrity/consistency checks (accuracy) Yes

C15 - Old source dates (up-to-datedness) Yes

C16 - Handling errors or complaints by companies (accuracy) Yes

C17 - Complaints or appeals from clients Yes

C18 - Other Yes

DIALOGUE WITH COMPANIES

C19 Questionnaire response rates Yes

C20 Final profile response rates Yes

C21 Draft profile response rates Yes


STAFF

C22 Procedures and criteria for recruiting suitably qualified staff are established Yes

C23 QMS documentation is available to all staff Yes

C24 QMS documentation updates are notified to all research staff and relevant suppliers/partnerships Yes

C25 On-going training systems focused on QMS are organised Yes Quality is regularly addressed at the research team meet-ings (every month)

C26 Documented procedures dealing with feedback and corrective action are in place Yes

C27 The QMS Statement and the Quality Manual have been understood, implemented and maintained at all levels Yes

VERIFICATION OR OTHER ASSURANCE PROCESSES

C28 One or more other external verification/certification processes have been undertaken No

OPEN QUESTIONS

C29 Handling errors or complaints by companies (accuracy): the formal procedure for dealing with company complaints is presented in Vigeo Rating QMS doc-

ument

C30 Complaints or appeals from clients: Complaints are currently dealt with on an ongoing basis by the commercial service and transmitted to the Research Director for verification and (if relevant) correction. This procedure is presented in Vigeo Rating QMS document.


D RESEARCH METHODOLOGIES

UNDERLYING CONCEPTS & APPROACH

D01 The methodology has conceptual underpinnings and objectives (>D39) Yes

Methodology is inspired by:

D02 - General international codes, conventions, guidelines (>D39) Yes

B03 - International codes on corporate sustainability (>D39) Yes

D04 - Concepts of corporate social responsibility and business ethics (>D39) Yes

D05 - Other concepts (>D39) No

Methodology integrates:

D06 - ESG criteria (>D39) Yes

D07 - SEE (Social, Environmental & Ethical) risk rating (>D39) Yes

D08 - Other concepts (>D39) No

D09 The methodology is documented Yes In manuals and internal documents, but also on the Vigeo website: http://www.vigeo.com/csr-rating-agency/en/2-3-methodologie

SCOPE

D10 The methodology comprises data collection Yes

D11 The methodology comprises data analysis Yes

D12 The methodology comprises data assessment/evaluation Yes

D13 The methodology is applied equally/consistently to all companies and regions (>D40) Yes

D14 The methodology allows sector differentiation or benchmarking (>D40) Yes

OWNERSHIP

CORE DERI

D15 Research organisation developed, owns and updates this methodology Yes Yes

D16 Research organisation co-developed, co-owns and co-updates this methodology (>D41) No No

D17 Research organisation uses an external methodology (>D41) No No

D18 This methodology is used by research suppliers or by other research groups (>D42) No No Only until 2011 not anymore

D19 This methodology is based on clients' criteria/methodology or it is tailor made No No

DEVELOPMENT AND REVIEWS OF METHODOLOGY

Reviews and development of methodology result from:

D20 - Initiative of in-house dedicated team 1 The Domain Groups, working under

the responsibility of the Methodology Department, are responsible for R&D related to methodology. In addition there are ad hoc development work-ing group and task forces

D21 - Common action undertaken within a given partnership 3

http://www.vigeo.com/csr-rating-agency/en/2-3-methodologie



D22 - Clients 3

D23 - Demands from members/shareholders/board 4

D24 - Demands from other stakeholders 3

D25 - Requirement/recommendation of internal advisory committee 1 There are dedicated working groups for major methodology reviews.

D26 - Requirement/recommendation of independent advisory committee 2 The Scientific Council oversees major methodological evolutions

D27 Frequency of major (systemic) review of overall methodology 0.5 At least

D28 Frequency of minor review of overall methodology 1 At least

D29 Percentage of criteria which are reviewed/amended each year 38 Roughly estimated

D30 Programme for introducing new areas or criteria No

Reviews are subject to the approval, or are signed off by the:

D31 - Board of directors No

D32 - Shareholders (or members) No

D33 - Chief executive or senior management level Yes

D34 - Other members of the staff (quality manager, research director, researchers…) Yes All methodological changes are sub-

mitted for validation by the Director

of the Methodology Department

D35 - External expert team Yes Major changes in the methodology are subject to approval by Vigeo Sci-entific Board, which contributes to Vigeo’s independence and profession-

alism. It defines the code of ethics, guarantees ‎it is being respected and

guides our methodology in a scientific way.‎

Missions:‎

To examine the principles and

rules of the methodologies applied to the different prod-ucts ‎before their marketing

To ensure the scientific monitor-

ing of the rating activity and particularly of the effective-ness ‎with which the method-

ology is applied

To express an opinion in case of

any conflict related to the im-plemented


gy ‎between Vigeo and anoth-

er rated company Its composition is available on Vigeo website: http://www.vigeo.com/csr-rating-agency/en/1-2-4-gouvernance#panel3

INCLUSION OF STAKEHOLDER ISSUES INTO METHODOLOGY

Stakeholder issues are built into (the reviews of) the methodology:

D36 - By monitoring specialised press, publications, websites Yes

D37 - Through frequent direct meetings Yes

D38 - By routinely including stakeholder engagement No Engagement with stakeholder groups for methodology development takes place frequently, but not routinely

OPEN QUESTIONS

D39 1. Human Resources: Continuous improvement of professional relations, labour relations and working conditions.

Internationally recognised reference texts are amongst others: ILO: Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy ILO: Equality of Treatment Convention (Conv. 118) UN: Declaration on the Right and Responsibility of Individuals, Groups and Organs of Society to promote and protect universally recognized Human Rights

and Fundamental Freedoms EU: Community Charter on the Fundamental Social Rights of Workers EU: Council Decision 2003/578/CE of 22 July 2003 on Guidelines for the Employment Policies of Member States 2. Human Rights at the Workplace: Respect for freedom of association, the right to collective bargaining, non-discrimination and promotion of equality, elimination of illegal working practices

such as child or forced labour, prevention of inhumane or degrading treatment such as sexual harassment, protection of privacy and personal data. Internationally recognised reference texts are amongst others: UN: Universal Declaration of Human Rights ILO: ILO Declaration on Fundamental Principles and Rights at Work OECD: OECD Guidelines for Multinational Corporations UN: Declaration on the Elimination of Discrimination against Women Proclaimed by General Assembly Resolution 2263(XXII) of 7 November 1967

3. Environment: Protection, safeguarding, prevention of damage to the environment, implementation of an adequate management strategy, eco-design, protection of biodi-

versity and co-ordinated management of environmental impacts on the entire lifecycle of products or services. Internationally recognised reference texts are amongst others: UN: Rio Declaration EU: The Green Paper on Integrated Product Policy UN: Agenda 21

UN: Kyoto Protocol to the Framework Convention on Climate Change


EU: Council Directive 85/203/EEC of 7 March 1985 on Air Quality Standards for Nitrogen Dioxide 4. Business Behaviour: Consideration of the rights and interests of clients, integration of social and environmental standards in the selection of suppliers and on the entire supply chain, effective prevention of corruption and respect for competitive practices. Internationally recognised reference texts are amongst others: UN: United Nations Guidelines for Consumer Protection, revised 1999

OECD: OECD Guidelines on the Protection of Privacy and Transborder Flows of Personal Data UN: Global Compact UN: United Nations Convention against Corruption

WTO: Agreement on trade-related aspects of intellectual property rights (ADPIC) Annex 1C to the Agreement establishing the WTO, Marrakech, 1994 5. Corporate Governance: Effectiveness and integrity, guarantee of independence and efficiency of the Board of Directors, effectiveness and efficiency of auditing and control mecha-

nisms, in particular the inclusion of social responsibility risks, respect for the rights of shareholders, particularly minority shareholders, transparency and rationale for the remuneration of directors. Internationally recognised reference texts are amongst others: OECD: OECD Corporate Governance Principles EU: EU Regulation 1606/2002 of the European Parliament and of the Council of 19 July 2002 on the Application of International Accounting Standards

6. Community Involvement: Effectiveness, managerial commitment to community involvement, contribution to the economic and social development of territories / societies within which the company operates, positive commitment to manage the social impacts linked to products or services and overt contribution and participation in causes of public or general interest. Internationally recognised reference models are amongst others: WTO: Agreement on trade-related aspects of intellectual property rights (ADPIC) Annex 1C to the Agreement establishing the WTO, Marrakech, 1994 EU: Commission Regulation of 27 April 2004 on the application of Article 81(3) of the Treaty regarding certain categories of technology transfer agreements

D40 The same standard set of procedures, criteria and rating guidelines applies to all companies that are analysed under the Equitics methodology, but for each sector, the weight and the precise content of each of the criteria is adjusted and customised.

D41 The Equitics methodology is a trademark and belongs to Vigeo

D42 The Equitics methodology is used to rate companies around the world. The outcome of the research is used by asset managers and institutional investors around the world.


E RESEARCH FRAMEWORK

ELEMENTS OF THE FRAMEWORK

How many items does the Research Framework contain in terms of:

E01 - Categories [research domains, …] 6 Human Resources, Human Rights, Community Involve-ment, Envi-ronment, Business Behaviour, Corporate Governance

E02 - Aspects [themes, issues, …] 38

E03 - Criteria/indicators 330

OVERALL FRAMEWORK

The Research Framework has criteria/indicators covering: POL MANA PERF REP

E04 - Community involvement; community impact 9 10 8 E18

E05 - Corporate Governance 9 11 12 E19

E06 - Customer/product responsibility 9 9 8 E20

E07 - Environment 18 28 33 E21

E08 - Health and safety 3 4 3 E22

E09 - Human Rights 12 9 12 E23

E10 - Labour practices and decent work 16 21 25 E24

E11 - Social, Environmental, Ethical (SEE) Risks E25 E25 E25 E25

E12 - Stakeholder Engagement E26 E26 E26 E26

E13 - Supply chain responsibility 9 9 5 E27

E14 - Other 9 9 9 E28

The Research Framework has aspects and criteria/indicators covering:

E15 - Controversies (>E29) Yes

E16 - Negative screening (> Sheet "L") Yes

E17 - Positive screening (>E30) Yes

FRAMEWORK IN FURTHER DETAIL

Criteria/indicators covered by the framework include:

E18 Community involvement: Promotion of social and economic development, Societal impacts of products/service, Contribution to general interest causes POL: 9, MANA: 10, PERF: 8. REP: the assessment of the level of disclosure is integrated in the rating scales of all criteria


E19 Corporate Governance: Board of Directors, Audit& Internal Controls, Shareholders, Executive Remuneration 42 indicators

E20 Customer/product responsibility: product safety, Information to customers, Responsible customer relations POL: 9,MANA: 9, PERF: 9, REP: the assessment of the level of disclosure is integrated in the rating scales of all criteria

E21 Environment: Environmental strategy and eco-design, Pollution prevention and control (soil, accident), Development of green products and services, Pro-tection of biodiversity, Protection of water resources, Minimizing environmental impacts from energy use, Management of atmospheric emissions, Waste management, Management of local pollution, Management of environmental impacts from transportation, Management of environmental impacts from the use and disposal of products/services

POL: 18, MANA: 28, PERF: 33, REP: the assessment of the level of disclosure is integrated in the rating scales of all criteria

E22 Health and safety: Improvement of health and safety conditions including Stress at work POL: 3, MANA: 4, PERF: 3, REP: the assessment of the level of disclosure is integrated in the rating scales of all criteria

E23 Human Rights: Respect for human rights standards and preventions of violations, Respect for freedom of association and the right to collective bargaining, Non-Discrimination, Elimination of forced labour and child labour POL: 12, MANA:9, PERF: 12, REP: the assessment of the level of disclosure is integrated in the rating scales of all criteria

E24 Labour practices and decent work: Promotion of labour relations, Encouraging employee participation, Responsible management of restructurings, Career management and promotion of employability, Quality of remuneration systems, Respect and management of working hours POL: 16, MANA: 21, PERF:25, REP: the assessment of the level of disclosure is integrated in the rating scales of all criteria

E25 Social, Environmental, Ethical (SEE) Risks: Vigeo defines 4 risk classes: Reputation, Operational efficiency, Human capital, Legal security

E26 Stakeholder Engagement: there are no separate criteria on stakeholder engagement, but the level of stakeholder engagement is integrated in the rating

scale of different criteria.

E27 Supply chain responsibility: Sustainable relations with suppliers, Integration of environmental factors in the supply chain, Integration of social factors in the supply chain POL: 9, MANA: 9, PERF:5, REP: the assessment of the level of disclosure is integrated in the rating scales of all criteria

E28 Other: Business integrity: Prevention of corruption, Prevention of anti-competitive practices, Transparency and integrity of influence strategies and practic-es. POL: 9, MANA: 9, PERF:9, REP: the assessment of the level of disclosure is integrated in the rating scales of all criteria

Aspects covered by the framework include:

E29 Controversies: Controversies are systematically integrated in the Results item (Performance).

E30 Positive screening areas: the nature of the Vigeo analyses implies the identification of good practices and positive contributions of companies to sustainable development. This information may very well be used for 'positive screenings', but Vigeo itself doesn't do this.

SPECIFICITIES

E31 Qualitative & quantitative data are balanced Ratio qualitative: (100*249)/(305)=81,60%

E32 Management and performance criteria/indicators are balanced

Ratio management: (100*105)/305=34% Ratio performance: (100*106)/305=35%

E33 References to past and current performance are balanced: for most performance indicators, the trend is assessed (evolution over 3 or 5 years), which im-plies a balance between current and past performance.


E34 Social and environmental criteria/indicators are balanced Ratio social: (100*92)/305=30% Ratio environmental: (100*79)/305=26%

E35 Criteria/indicators developed by the research group take into account sector specific issues At the beginning of each sector update, the generic criteria system is customized to the sector. This involves activation/deactivation of criteria and adapta-

tion of indicators and rating scales.

E36 Criteria/indicators developed by the research group take into account different geographical/cultural contexts For many criteria, an adapted rating system is used for companies that are active in sensitive countries.

E37 Quantitative data is used for sector benchmarking Yes

E38 Quantitative data is used for producing historical or year-on-year data Yes

E39 No sectors are excluded from research


F RESEARCH PROCESS

DATA COLLECTING AND DATA PROCESSING

F01 Instructions on data collecting and data processing are available Yes

SOURCES OF INFORMATION

For each source (fuller details and explanations are provided >F61): USE TARG PERF PLAN

F02 Annual reports and accounts Yes No No No

F03 (Bought) directories, databases, profiles No No No No

F04 Alerts service Yes No No No

F05 Company visits or meetings No No No No

F06 Company websites Yes No No No

F07 Consulting experts Yes No No No

F08 CSR, sustainability, environment or similar reports Yes No No No

F09 Feedback from company over draft profile Yes No No No

F10 Intelligent search engines Yes No No No

F11 Internet research (non-corporate websites) Yes No No No

F12 Other company documents Yes No No No

F13 Processing regulatory data Yes No No No

F14 Questionnaires (post-analysis specific questionnaire) Yes No No No

F15 Questionnaires (pre-analysis generic questionnaire) No No No No

F16 Screening of the media, news services Yes No No No

F17 Specialised published stakeholder information Yes No No No

F18 Stakeholder information/data/opinions Yes No No No

F19 Telephone interviews with company representative(s) Yes No No No

SOURCES OF INFORMATION: ACTIVE STAKEHOLDER INPUT

Methods of routinely (ROUT) or additionally (ADDI) inputting information include: ROUT ADDI

F20 - Consulting stakeholder representatives, stakeholder specialists and local stakeholders Yes Yes Trade union organisations are routinely contacted. Addition-ally also other stakeholder

groups may be contacted

F21 - Contact stakeholders for random checks for verification purposes No Yes In interviews with stakehold-ers, company information may be verified.

Methods of routinely (ROUT), or additionally (ADDI) inputting information include: ROUT ADDI

F22 - Recording stakeholder information in the database Yes Yes Whenever relevant stakehold-

er information is available, it is

recorded in the data base


F23 - Incorporation of stakeholders' data and views into assessments Yes Yes Several rating guidelines refer

explicitly or implicitly to

stakeholder information

SCOPE: PRE-SELECTION OF COMPANIES

The methodology for selecting companies for the research universe, is:

F24 - Based on indices, by industry Yes

F25 - Based on activity No

F26 - Specific client demand Yes

F27 - Market capitalisation Yes

F28 - Other (>F62) No

SCOPE: INDIVIDUAL COMPANIES

F29 Global operations are covered (>D57) Yes

F30 Subsidiaries, joint ventures and associated companies are covered (>F63) Yes

F31 Upstream ownership (shareholding) is analysed (>F63) No

SCOPE: UNIVERSE OF COMPANIES

F32 Approximate number of companies covered (F64) 2400

MONITORING AND UPDATING

F33 % of companies researched that are monitored permanently (>F65) 100%

F34 Major updates of profiles/databases conducted with a regular frequency Yes Sector are updated approximately every

18-24 months.

F35 Updating is sector specific Yes

F36 Updating is event/alert specific Yes Companies in the uni-

verse are monitored on

an ongoing basis,

through media screen-

ings and internet

search robots. In case

of events that poten-

tially have considerable

impact on scores, an

alert is issued and the

scores are modified.


F37 Updating is an on-going activity Yes

TEAMWORK

F38 Responsibility and accountability for the research is structured (>F66) Yes

RECORDS

F39 Company profiles are kept on hardware or in software for operational use Yes

F40 A central research database is maintained Yes

F41 A 'logbook' is maintained Yes

F42 A 'company data record keeping system’ is maintained Yes

F43 Logbook and records are stored for a specified period of time (# of years) The logbook is not stored for a specific

period. It is never

erased

COMPANY CONTACT PROTOCOLS AND FEEDBACK

F44 A protocol regarding the relation with companies subject to research, is available Yes

F45 Companies always receive their published profiles Yes 0.5 Companies are invited to consult (for free) part of their published profile at

the end of each sector re-view in which they are in-cluded

F46 Companies receive draft profile for feedback, before final assessment Yes Always

F47 Comments of the company are assessed and integrated into the profile/database Yes

F48 Comments of the company are included in a separate section No

F49 Not responding to a questionnaire leads to some downgrading (in the assessment) No* However, the ab-sence of infor-mation leads usual-ly to a low score, and by doing so tends to lower the rating

SUB-CONTRACTING AND RESEARCH PARTNERSHIPS

ROUT ADDI

F50 Research is purchased from other research groups or some kind of partnership is in place (>F67) No No

F51 Research is purchased from NGOs No No

F52 Research is purchased from business information providers No No

Sub-contracting/partnership execute:


F53 - most or all of the research over a part of the research universe No

F54 - only part of the research over a part of the research universe (for ex. addition of local data/context) No Vigeo's partnership with OWW for Asia Pacific re-search has been stopped S1 -2011

F55 - part of the research over the full research universe (for ex. issue specific data) No

F56 # of researchers involved at sub-contractors/partners NR

F57 % of research obtained from sub-contractors/partners NR

F58 Sub-contractors are subject to the same quality requirements (apply the same methodology) No

LIABILITY

F59 Policy on liability for accuracy of information is publicly disclosed (>F68) Yes

F60 A disclaimer on the research activities is issued (>F69) Yes

OPEN QUESTIONS

F61 Use of targets, performance and improvement plans for processing sources: Vigeo systematically used as sources for each update :

- Corporate literature and inputs (Annual reports and accounts, CSR, sustainability, environment or similar reports, company websites, post analysis specific questionnaires, feedback from companies over draft profiles), - Specialized published stakeholder information or direct stakeholder contacts - Screening of media and news services (throught Factiva accounts), intelligent search engines (the Autonomy technology that feeds the EquiNews process), alert services, and additional internet research.

The actual use is monitored during quality control, leading to feedback that is aimed at improvement whenever necessary. 'Other company documents', and regulatory data are used as sources whenever available and relevant, actual use is monitored through quality control and feedback is given aimed at im-provement. Attempts to obtain stakeholder information/data/opinions have to be made systematically, actual use is monitored during quality control and feedback is given aimed at improvement.

F62 Other pre-selection methodologies: The pre-selection methodologies is based on the inclusion in both equity & bond indices. The capitalisation / the amount

of debt on the bond market, the geographic localisations (Currently EUR, NAM and AP for the equity selection process), or the currency used when issuing

debt are criteria that are taken into account. Two research universes are defined. In the first one, companies within the followed indices. In the other one, other companies.

F63 Conditions or limitations: NR

F64 Conditions or rules: NR

F65 Update procedure: Update procedure: Companies in the universe are monitored on an ongoing basis, through media screenings and internet search robots.

In case of events that potentially have considerable impact on scores, an alert is issued and the scores are modified.

F66 Responsibility and accountability (+ organogram): The responsibility for sector studies and updates lies with the 'sector lead', who leads a team of analysts

working together on a specific sector study. The sector leads and the other analysts work under the responsibility of the research managers (one per cluster of sectors), and the research Director.

F67 Sub-contractor/supplier/partner: No sub-contractor


F68 Liability policy: “Although all reasonable care and every precaution has been taken in producing its ratings and audits, and in collecting and verifying under-lying data, Vigeo (and its analysts, auditors and authors) cannot fully guarantee the correctness of these data, ratings, audits, texts, documents and no responsibility or liability is assumed or accepted with respect to the use thereof and Vigeo will not assume any responsibility for damage resulting from such use. Although Vigeo has taken all reasonable care with respect to the preparation of said data, ratings, audits, texts, documents, no promise and/or any under-taking is made, accepted or implied that these provide a correct basis for investment decisions and/or provide complete answers to investment questions”.

“In no event shall Vigeo or its shareholders, directors, employees or suppliers be liable for lost profits or any damage arising out or in connection with her methodologies, procedures, data, ratings, reports, documents.”

F69 Disclaimer: “Reproduction of this document in whole or in part is prohibited without the express written authorization of Vigeo and is protected by the provi-

sion of the French Intellectual Property Code. The information in this document results from the application of Vigeo’s Equitics methodology and is based on sources which Vigeo believes are reliable. However, the accuracy, completeness and timeliness of this report are not guaranteed, and Vigeo shall under no circumstances be responsible for strategy choices, management decisions or, more generally, decisions of any nature taken by the reader in reliance upon

the information contained in this document.”


G ASSESSMENT PROCESS

RESPONSIBILITY FOR ASSESSMENTS

G01 Final assessments are never conducted by research unit; they are the responsibility of the customers No

G02 Final assessments are conducted by research unit following the criteria of the customers No

G03 Final assessments are conducted by research unit following third party criteria (>G14) No

G04 Final assessments are undertaken by research unit following its own methodology Yes The Equitics methodology does not include final assessments in the

sense of judgments of which compa-ny is (not) 'good enough' for - for instance inclusion in an SRI fund.

However, (non-final) assessments are made in the sense that every company gets for each of the six domains of CSR, scores and a rating (from double minus to double plus) that compares the performance of the company in that specific domain

with the performance of its sector peers. These (non-final) assessment principles and procedures are de-scribed in this document in the lines G05 to G17.

ASSESSMENT PRINCIPLES

G05 Assessments are conducted following a set of principles (>G15) Yes

ASSESSMENT PROCEDURES

G06 Assessments are automatically generated by computer software No The analyst enters data in the data base and indicates at which level of the predefined scoring scale the

company is performing for each spe-cific criterion. Starting from this, the software calculates the criteria scores, the domain scores and the domain ratings.

Assessments are produced or conducted by:

G07 - Clients Yes e.g. Forum Ethibel, not under the

responsibility of Vigeo

G08 - Analyst team Yes See G04

G09 - Board of directors No

G10 - Internal committee No


G11 - External committee, ethical commission (>G16)(>G17) No

G12 An Assessment Manual describes all process steps and instructions Yes The scores that are attached to spe-

cific performances or characteristic of a company are indicated by the 'scor-ing sentences' in the database

G13 A Registration System (minutes) for decisions and motivations on assessments is in place Yes In case the 'scoring sentences' aren't sufficiently clear, the analyst moti-vates the scoring level he/she has

indicated by writing text in a dedicat-

ed text box.

OPEN QUESTIONS

G14 Third party criteria: NR

G15 Outline of principles followed: Scoring is conducted at criterion level (based on a predefined rating scale) and scores are integrated at domain level. The scorings range from 0 to 100. Ratings are conducted at domain level. The ratings rank from -- (double minus) to ++ (double plus) and indicate the posi-tion of a company on a given domain as compared to the sector.

G16 Role of external/ethical committee members: NR

G17 Background of external/ethical committee members: NR


H PRO-ACTIVE STAKEHOLDER INVOLVEMENT

STAKEHOLDER DIALOGUE

Stakeholders' engagement is on the level of:

H01 - Methodological developments and reviews Yes e.g: introduction of the lobbying criteria

H02 - Data provision; data collecting Yes

H03 - Expert advice for assessments before or after research No* Occasionally, not on a systematic

basis : for sector customisation

H04 - Double checking of information No Stakeholder opinions are sought

mainly for controversies and

stakeholder relations

H05 - External verification processes for the purpose of accountability No

ACCOUNTABILITY OF STAKEHOLDER MANAGEMENT

H06 A Stakeholder Policy regarding stakeholder involvement in CSRR process is available Yes

H07 A Stakeholder Management Manual is operational for instructing and guiding the process Yes Analyst User Guide

H08 An annual Stakeholder Report is available Yes

STAKEHOLDER GROUPS

Stakeholders pro-actively solicited for methodological developments (METH), data collecting (DATA), assessment (ASSE) processes; number of contacts per company; number of contacts per year. Any explanations, limitations or caveats provided in H19:

METH DATA ASSE #/CO #/YR

H09 - CSR experts, academics Yes Yes No NR NR

H10 - Customers/consumers organisations No Yes No NR NR

H11 - Development NGO's No Yes No NR NR

H12 - Employees/unions No Yes No NR NR

H13 - Environmental NGO's or campaign groups No Yes No NR NR

H14 - Government and local authorities No Yes No NR NR

H15 - Human Rights NGO's No Yes No NR NR

H16 - Professional bodies or industry associations No No No NR NR

H17 - Single issue NGO's No Yes No NR NR

H18 - Other: … (>H20) No No No NR NR

OPEN QUESTIONS

H19 Explanations, limitations or caveats for involvement of stakeholder groups: systematic attempts are made for every sector to contact trade union organiza-tions for data collection. For other stakeholders, these are contacted on an ad hoc basis, depending on the sector, the company and the issues at stake.

H20 Other stakeholder groups (description)


I PRODUCTS AND SERVICES

CORE METHODOLOGY

The name of the core methodology covered by this Transparency Matrix: Equitics

CORE PRODUCTS & SERVICES (entire methodology is applied)

WITHOUT ANALYSIS AND ASSESSMENT

I01 - Company profiles (raw data) No Each report provides an anal-ysis

I02 - Databases (raw data) No

I03 - Other No

CORE PRODUCTS & SERVICES

AFTER ASSESSMENT

I04 - Company profiles Yes Vigeo profile

I05 - Investment recommendations or universe Yes Euronext-Vigeo indices

I06 - Other

DERIVED PRODUCTS & SERVICES (part of the methodology is applied)

WITHOUT ANALYSIS AND ASSESSMENT

I07 - Tailor made reports (factual) No Each report provides an analysis

I08 - Other

DERIVED PRODUCTS & SERVICES

AFTER ASSESSMENT

I09 - Alerts service Yes More than 600 in 2013

I10 - Benchmarking Yes Sectors + tailor made benchmarks

I11 - Company rating(s) Yes 2400

I12 - Compliance reports No

I13 - Cross sector ratings or reports Yes 36 Equi sectors

I14 - Engagement services Yes Vigeo Engagement services on the request of clients

I15 - ESG risks and opportunities assessments Yes Vigeo Equi -visio

I16 - Index(es) Yes Currently 9 indices

I17 - Integration Yes Based on Equitics research

I19 - Issue analysis & thematic products Yes Thematic studies, Sustaina-bility Focus, Sector studies.


I20 - Negative screen reports Yes Vigeo Disputable activities

research

I21 - Positive screen reports Yes Based on Equitics

I22 - Sector rankings or ratings or reports Yes Integrated into Equitics re-search

I23 - SEE risks ratings Yes Integrated into Equitics re-search

I24 - Other

OTHER CORE METHODOLOGIES (not covered by this TM)

I25 The name of the core methodologies not covered by this Transparency Matrix: NR

OTHER RESEARCH DOMAINS AND PRODUCTS

Research and products, covered by this methodology, are also available for:

I26 - Non-listed companies Yes 200

I27 - Non-listed issuers of bonds Yes 240247

I28 - Countries or governmental institutions Yes 15 governmental institutions – 175 countries10

I29 - Transnational institutes Yes 9


J COUNTRY RATING


J01 Country rating or governments screening is provided Yes


J02 Instructions on data collecting and data processing are available Yes

The research and assessment processes:

J03 - are executed by the same team of analysts as for the Core products/services Yes

J04 - are based on independent sources Yes

J05 - allow identification of best practices or performance Yes

J06 - ensure that the criteria and methodology are applied equally to comparable countries Yes

J07 - capture relevant or material issues Yes

J08 - are being updated on a systematic basis Yes

J09 - are underpinned by the same QMS system Yes* (adapted)

J10 - are made transparent in terms of methodology, range of criteria, stakeholder involvement, coverage, etc. Yes


Next to the general sources (mentioned earlier) specific sources of information are sought:

J11 (Bought) directories, databases, profiles No

J12 Consulting experts Yes National and international ex-perts for methodological devel-

opment.

J13 Government websites or governmental documents Yes Through international organisa-tions

J14 Processing regulatory data Yes e.g. the signature, ratification or

not of International Conventions by the countries under review.

J15 Reports from national, international and transnational institutes Yes e.g. World Bank, United Nations, World Health Organisation, Food and Agriculture Organisation, International Labour Organisa-

tion, OECD, etc.

J16 Reports from NGO's Yes e.g. Amnesty International, Transparency International,

Freedom House, Human Rights Watch, Reporters Without Bor-

ders, etc.

J17 Specialised published stakeholder information Yes See J16



Methods of routinely including active stakeholder information:

J18 - Processing stakeholders information Yes The opinion of stakeholders are systematically integrated into our research when we update our research (every 6 months)

SCOPE: UNIVERSE OF COUNTRIES AND/OR TRANSNATIONAL INSTITUTIONS

J19 Approximate number of countries covered 175 Regions covered are: J20 - Africa Yes J21 - Asia-Pacific Yes J22 - Europe Yes

J23 - Latin-America Yes J24 - Middle East Yes J25 - North-America Yes

ASSESSMENT PROCESS & INDICATORS

J26 Instructions on selection and exclusion processes are available Yes

Details about indicators are available:

J27 - Development issues Yes e.g. Development aid, Poverty, Mortality, Nutrition, Drinking Water, Housing, Energy Con-sumption…

J28 - Economical responsibility Yes e.g. Employment in Social pro-

tection and solidarity, Agricultural

land, FDI, Internet users, Poverty rate….

J29 - Education Yes e.g. Educational Policy, Primary and Secundary school indicators…

J30 - Environmental protection Yes e.g. Participation in International environmental conventions, Air emissions, Climate change, Ozone layer protection, Local and regional air quality, Water, Biodi-versity, Land use, Waste, Agricul-

ture, Energy Consumption…

J31 - Health Yes e.g. Mortality, Nutrition, Drinka-ble Water, HIV, Malaria, Tubercu-losis…

J32 - Human rights Yes e.g. Equal remuneration, forced

labour, discrimination, Minimum


age, Child labour, freedom of

association and collective bar-gaining…

J33 - Law & Governance Yes e.g. Respect, protection and promotion of civil rights (…), Respect, protection and promo-

tion of labour rights(…)…

J34 - Performance on the level of democracy and democratisation Yes e.g. Political freedom and stabil-

ity, Control of corruption, Inde-pendence of justice, Press free-dom…

J35 - Market rules Yes e.g. Market regulation, Regulato-ry quality…

J36 - Social protection and solidarity Yes e.g. Poverty, Employment, Edu-cation, Health, Housing, Gender

Equality, Development Aid…

J37 - Other Yes e.g. Safety

J38 Details about weightings are available Yes

J39 Weighting is based on: Importance of the issue

Adequacy of the indicator to

measure performance

Capability of the country to have impact on the indicator


J40 % of countries that are monitored permanently 100

J41 Updates of profiles/databases conducted with a regular frequency Every 6 months

OUTPUT: PRODUCTS AND SERVICES

Provided products and services include: Commercial names are given:

J42 - Benchmarking Yes Global and then at domain, sus-tainability issue and indicator

levels, and through user-friendly charts

J43 - Country profiles Yes Showing performance, trends and weights at indicator, sustainabil-ity issues and domain levels

J44 - Country ranking Yes Global, by HDI classes, within


geographical zones (e.g. EU,

Eurozone, etc.)

J45 - Country reports Yes To be launched

J46 - Databases Yes Full database with all raw indica-tors used to make our evalua-tions available online to clients

J47 - Filters Yes Clients can set up their own

model to see only the kind of data they are interested in to

show up online The full Excel file also enables filtering on raw data also and not only Vigeo scores

J48 - Trends & performances Yes Appear in each country detailed profile on line

J49 - Other: Yes on our Country Rating product on Vigeo’s extranet (plus: portfo-lio scoring; risk mapping; full

possibility to tailor-made the analysis model and extract new rankings, comparisons and coun-try profiles; comparisons within same HDI group countries, or among same geographical areas,

etc.)

OPEN QUESTIONS

J50 Definitions and general concepts of country rating

Vigeo - Sustainability Country Rating © measures and compares the levels of integration of sustainable development objectives in a country‟s institutional systems and public policies. The ratings are designed to help investors select bonds for investment. The results provide a picture of the comparative risks and performances of a universe composed of 175 countries, with regard to universally acknowledged social responsibility objectives. Our methodological choices are structured by two types of filters. The first identifies countries that respect the rule of law, fundamental human rights, demo-cratic governance, market rules, universal environmental protection standards and social standards. This universe is then filtered a second time, to rank countries according to their human and environmental development needs. The ranking obtained is based on indicators, among which traditional GDP-type indicators are not ignored but are considered from a perspective which takes

into account the complexity of issues involved in sustainable development. Vigeo‟s rating model was established on the basis of the Millennium Development Goals set by the members of the UN, and the action programmes of Agen-

da 21, adopted by 173 countries at the Rio Earth Summit in 1992. Vigeo has regrouped these sustainable development goals into three rating domains, each of which comes on equal weight in the model: - Rule of law and governance (INSTITUTIONS) - Social protection and solidarity (SOCIAL) - Environmental protection (ENVIRONMENT)


These three domains are analysed by means of 38 criteria, which bring together 135 indicators of two types: - Commitment indicators: these reflect the state‟s level of commitment to the goals and principles set by major international agreements: Conventions, recommendations and statements of the ILO; UN Charters and treaties; guiding principles of the OECD; regional instruments (assuming that they comply fully with the United Nations Charter); the Universal Declaration of Human Rights and its related protocols and treaties. - Result indicators: these measure the effectiveness of the state‟s sustainable development actions.


K SCREENING OF TRANSNATIONAL INSTITITUTIONS


K01 Screening of transnational institutions is provided Yes


K02 Instructions on data collecting and data processing are available Yes

The research and assessment processes:

K03 - are executed by the same team of analysts as for the Core products/services Yes

K04 - are based on independent sources Yes

K05 - allow identification of best practices or performance Yes

K06 - ensure that the criteria and methodology are applied equally to comparable institutions Yes

K07 - capture relevant or material issues Yes

K08 - are being updated on a systematic basis Yes

K09 - are underpinned by the same QMS system Yes

K10 - are made transparent in terms of methodology, range of criteria, stakeholder involvement, coverage, etc. Yes


Next to the general sources (mentioned earlier) specific sources of information are sought:

K11 (Bought) directories, databases, profiles No

K12 Consulting experts No

K13 Government websites or governmental documents Yes

K14 Processing regulatory data Yes

K15 Reports from national, international and transnational institutes Yes

K16 Reports from NGO's Yes

K17 Specialised published stakeholder information Yes


Methods of routinely including active stakeholder information:

K18 - Daily information Yes Analysts receive daily information

on their companies through searching tool. In case are found information that could affect Vigeo’s opinion on these compa-nies, a note is prepared and sent

to clients.

SCOPE: UNIVERSE OF TRANSNATIONAL INSTITUTIONS

K19 Approximate number of transnational institutions covered 9 Regions covered are:


K20 - Africa Yes K21 - Asia-Pacific Yes K22 - Europe Yes

K23 - Latin-America Yes K24 - Middle East Yes K25 - North-America Yes

ASSESSMENT PROCESS & INDICATORS

K26 Instructions on selection and exclusion processes are available Yes

Details about indicators are available:

K27 - Development issues Yes

K28 - Economical responsibility Yes

K29 - Education No

K30 - Environmental protection Yes

K31 - Health Yes

K32 - Human rights Yes

K33 - Law & Governance Yes

K34 - Performance on the level of democracy and democratisation No

K35 - Market rules No

K36 - Social protection and solidarity Yes

K37 - Other + Management of relations with

customers and stakeholders, business ethics, management of human resources

K38 Details about weightings are available Yes

K39 Weighting is based on: Nature of CSR issue under analy-

sis + Exposure of stakeholders + Risks faced by the company if the CSR issue is not efficiently man-aged.


K40 % of transnational institutions that are monitored permanently 100%

K41 Updates of profiles/databases conducted with a regular frequency Yes, every 18-24 months



K42 - Benchmarking Yes Equitics

K43 - Transnational institution profiles Yes Equitics profile

K44 - Transnational institution ranking Yes Integrated into Equitics


K45 - Transnational institution reports Yes Equitics profile

K46 - Databases Yes Equitics

K47 - Filters Yes Integrated into Equitics

K48 - Trends & performances Yes Integrated into Equitics

K49 - Other:


L NEGATIVE SCREENING


L01 Negative screening is processed and commercialised as a separate product Yes

L02 Negative screening is included in the Core methodology No


L03 Instructions on data collecting and data processing are available Yes

The research processes:

L04 - are based on independent sources Yes

L05 - allow identification of best practices Yes

L06 - ensure that the criteria and methodology are applied equally to comparable companies Yes

L07 - capture relevant issues Yes

L08 - are being updated on a systematic basis Yes

L09 - are underpinned by the same QMS system Yes

L10 - are made transparent in terms of methodology, range of criteria, coverage, etc. Yes


Data collection is processed by:

L11 Internal general team (same team of analysts as for the Core products/services) Yes

L12 Internal dedicated (specialised) team No

L13 External supplier No

L14 % external data versus total data NR

L15 Specific/specialised methods of data collection Yes


Methods for routinely including active stakeholder information:

L16 - Permanent monitoring Yes

SCOPE: UNIVERSE OF EXCLUDED COMPANIES OR INSTITUTIONS

L17 Approximate number of companies or issuers covered 2400 Regions covered are: L18 - Africa Yes L19 - Asia-Pacific Yes L20 - Europe Yes L21 - Latin-America Yes L22 - Middle East Yes L23 - North-America Yes


SCOPE: DEFINITION AND PROVISION OF OUTPUT

Negative screening is an approach that excludes companies/countries/sectors, if involved in certain activities. In the Research Group's products, negative screening is related to:

L24 - "simple screening" Yes

L25 - "ethical" exclusions or "value-based" exclusions Yes

L26 - "norms-based screening" Yes

L27 Output is delivered as data, without advice No L28 Output is provided with advice on possible exclusions Yes L29 Exclusions are related to quantitative thresholds (such as turnover data, etc.) Yes L30 Exclusions are advised on case by case basis Yes L31 Decisions on exclusions are left to customers Yes

THEMES, ISSUES, CONTROVERSIES

L32 Negative Screening Guidelines and Manual are available Yes Analyst User Guide

The division of the screening criteria is based on:

L33 - "simple", "value-based", "norms-based" exclusions Yes

L34 - environmental, social, corporate governance or ethical issues Yes

L35 - other:

L36 Controversies are being assessed separately from automatic exclusions Yes


L37 % of companies or issuers that are monitored permanently 100%

L38 Updates of profiles/databases conducted with a regular frequency Every 18-24

months



L39 - Company level screening reports Yes

L40 - Sector level screening reports No

L41 - Thematic screening reports No

L42 - Other:

OPEN QUESTIONS

L43 What is the Research Group's interpretation/definition of 'Negative Screening'? Negative Screening: screening on criteria -> exclusion from investment universe Disputable activities: products/activities that

raise social or ethical concerns


L44 Does the Research Group use different approaches towards Negative Screening? Disputable activities + controversy screening have a specific methodology. In addition customised methodologies are applied for specific clients. The research adopts the research in line with the rules set for the client


M ENGAGEMENT SERVICES | PROXY VOTING SERVICES

ENGAGEMENT SERVICES AS DERIVED PRODUCT ENG VOT ENGAGEMENT (ENG) PROXY VOTING (VOT)

Research Group provides ENG/VOT Services as derived product: Yes No Engagement services

M01 - only research and assessment for ENG/VOT to customers (= core product) Yes No We provide insights on major controversies of

companies invested

M02 - assistance in drafting ENG/VOT policies with customers No No

M03 - provision of collective ENG/VOT policies No No

M04 - issue of shareholder resolutions No No

M05 - assistance for Proxy Voting at general meetings No No

M06 - intermediation for dialogue between shareholders & companies on ESG issues Yes No We prepare the letter to send to companies and to

be signed by the custom-ers. Moreover, on request

of customers, we arrange conference calls, meet-ings.

M07 - management of collaborative Engagement with companies and stakeholders No No

M08 - publication of voting activities and reasons behind voting decisions No No

M09 - monitoring and measurement of results No No

M10 - reporting on performance, effectiveness and improvements over time No No

M11 - other: No No

APPROACH ENG VOT ENGAGEMENT (ENG) PROXY VOTING (VOT)

M12 A policy document on ENG/VOT approach is available Yes No

M13 Aim of ENG/VOT policy is clearly described Yes No

The ENG/VOT policy is focused on:

M14 - ESG transparency No No

M15 - Controversies, incidents, alerts Yes No The goal of engagement is to promote dialogue be-

tween companies and investors on serious ESG

dispute that may pose a reputational risk for the company and a financial risk for the investor. Kind

of controversies are viola-tion of human rights, of


workers’ rights, huge en-

vironmental damage, non compliance of corporate governance codes.

M16 - Thematic approach Yes No Core ILO conventions

M17 - Supply chain issues and emerging countries No No

M18 - Other: No No

MANAGEMENT OF ENGAGEMENT AND PROXY VOTING SERVICES ENG VOT ENGAGEMENT (ENG) PROXY VOTING (VOT)

M19 Instructions (manuals) on ENG/VOT services are available No no

The services (are):

M20 - based on independent sources No no

M21 - allow identification of best practices No no

M22 - ensure criteria & methodology are applied equally to comparable companies No no

M23 - capture relevant issues No no

M24 - being updated on a systematic basis No no

M25 - underpinned by a thorough QMS system No no

M26 - made transparent in terms of methodology, range of criteria, coverage, etc. No no


PROVISION OF SERVICES ENG VOT ENGAGEMENT (ENG) PROXY VOTING

(VOT)

ENG/VOT services are provided by:

M27 Internal general team (same team of analysts as for the Core products/services) No no

M28 Internal dedicated (specialised) team Yes No A project manager coordi-

nates the ESG analysts for

delivering information and

data about controversies

M29 External network Yes No Trade Unions

SCOPE: UNIVERSE OF COMPANIES ENG VOT ENGAGEMENT (ENG) PROXY VOTING

(VOT)

M30 Approximate number of companies covered 500 0

M31 Geographical scope: EUR + NAM

M32 Selection of companies and priorities to engage with is based upon: Gravity of controversy

Recursion of controversy

Weight of invested company

in the investor portfolio

openness to dialogue by

corporate and responsive-

ness to contact

MONITORING ENG VOT ENGAGEMENT (ENG) PROXY VOTING (VOT)

M33 Effectiveness of ENG/VOT activities is monitored Yes No It is monitored through the:

responsiveness

quality of the company feedback

M34 Effectiveness is monitored on a regularly basis Yes No Quarterly

M35 Unsuccessful ENG/VOT activities result in further steps Yes No Exclusion

COMMUNICATION ENG VOT ENGAGEMENT (ENG) PROXY VOTING (VOT)

M36 ENG/VOT activities are communicated to customers No No

M37 ENG/VOT activities are communicated to investors and other stakeholders No No

M38 ENG/VOT reports are communicated on a regular basis No No


Z DISCLOSURE AND COMMUNICATION

AVAILABILITY OF DOCUMENTS

The following documents are available (AVAI) to the public (PUBL), and/or to customers (CUST) and/or to researched companies (COMP), through specified channels (CHAN); limitations are explained (EXPL)

AVAI PUBL CUST COMP EXPL CHAN

Z01 - The QMS Statement Yes Yes Yes Yes Website

http://www.vigeo.com/csr-rating-agency/en/2-

4-qualite-et-deontologie#panel2

Z02 - Mission Statement Yes Yes Yes Yes Website

http://www.vigeo.com/csr-rating-

agency/en/notre-mission

Z03 - Group Code of Conduct; integrity principles Yes Yes Yes Yes Website


agen-

cy/images/PDF/Publications/CODE_OF_CONDUC

T_EN.pdf

Z04 - Independence Policy Yes Yes Yes Yes Within code of conduct on the website

Z05 - Independence Report Yes Yes Yes Yes on demand

Z06 - Staff Code of Conduct; integrity principles Yes Yes Yes Yes on demand

Z07 - Composition of the board of directors Yes Yes Yes Yes Website


2-4-gouvernance#panel2

Z08 - Composition of the advisory committees Yes Yes Yes Yes Website


2-4-gouvernance#panel3

Z09 - Responsible managers for QM of research/assessment Yes Yes Yes Yes on demand

Z10 - Analysts Yes Yes Yes Yes Website


agency/en/our-teams

Z11 - An organogram explaining roles and responsibilities of all staff

Yes Yes Yes Yes on demand

Z12 - Members, shareholders Yes Yes Yes Yes Website


2-4-gouvernance

Z13 - Partnerships Yes Yes Yes Yes Website


4-nos-partenaires

http://www.vigeo.com/csr-rating-agency/en/2-4-qualite-et-deontologie#panel2

http://www.vigeo.com/csr-rating-agency/en/2-4-qualite-et-deontologie#panel2



http://www.vigeo.com/csr-rating-agency/images/PDF/Publications/CODE_OF_CONDUCT_EN.pdf




http://www.vigeo.com/csr-rating-agency/en/1-2-4-gouvernance#panel2




http://www.vigeo.com/csr-rating-agency/en/our-teams

http://www.vigeo.com/csr-rating-agency/en/our-teams

http://www.vigeo.com/csr-rating-agency/en/1-2-4-gouvernance

http://www.vigeo.com/csr-rating-agency/en/1-2-4-gouvernance

http://www.vigeo.com/csr-rating-agency/en/1-4-nos-partenaires



Z14 - Suppliers NR NR NR NR No supplier anymore

Z15 - Other stakeholders and their role Yes Yes Yes Yes Website


4-nos-partenaires

Z16 - Memberships/shareholding in other organisations Yes Yes Yes Yes a list of partnerships is posted on the website


4-nos-partenaires

Z17 - Annual activity report Yes Yes Yes Yes Website


agency/en/rapports-dactivite

Z18 - Annual accounts Yes Yes Yes Yes Website


agency/en/rapports-dactivite

Z19 - Protocol regarding relations with companies Yes Yes Yes Yes on demand

Z20 - Confidentiality Statement Yes Yes Yes Yes on demand

Z21 - Liability Statement Yes Yes Yes Yes on demand

Z22 - Methodology: data collecting + processing Yes Yes Yes Yes Website


3-methodologie

Z23 - Methodology: assessment Yes Yes Yes Yes Website


3-methodologie

Z24 - Description of the methodology review process Yes Yes Yes Yes Website


2-referentiel-d-analyse

Z25 - Output of Core research products: full version Yes Yes Yes Yes Sold on demand

Z26 - Output of Core research products: summarized version Yes Yes Yes Yes Sold on demand

Z27 - Output of Derived research products: full version Yes Yes Yes Yes Sold on demand

Z28 - Output of Derived research products: summarized version Yes Yes Yes Yes Sold On demand

Z29 - Company profiles or ratings, … Yes Yes Yes Yes Sold on demand

Z30 - Contact details for information, feedback and complaints (>Z35)

Yes Yes Yes Yes http://www.vigeo.com/csr-rating-agency/en/contacts/contacts-vigeo-

enterprise/webmaster-2 + Brochure

Z31 - Other:





http://www.vigeo.com/csr-rating-agency/en/rapports-dactivite








http://www.vigeo.com/csr-rating-agency/en/2-2-referentiel-d-analyse

http://www.vigeo.com/csr-rating-agency/en/2-2-referentiel-d-analyse

http://www.vigeo.com/csr-rating-agency/en/contacts/contacts-vigeo-enterprise/webmaster-2




PUBLIC INQUIRIES AND FEEDBACK

Z32 A feedback process and related tools is established Yes No No No Feedback is provided on a sys-tematic basis, there are specific and separate procedures for han-dling complaints from companies

and for handling complaints of clients. These specific procedures are available upon request.

Z33 Name and address or mail or telephone number of contact person is published Yes Yes Yes Yes Elisabeth Le Loir is responsible

for communication, her contact data are posted on the website

Z34 Documented procedures and records regarding complaints are maintained Yes No No No These records are kept for inter-nal use

Z35 Details: Elisabeth Le Loir(Vigeo), Les mercuriales - 40 avenue Jean Jaurès - 93170 Bagnolet - France T: +33 1 55 82 32 40 / 94 (direct) - F: +33 1 55 82 32 50 [email protected]

Z36 The 'official' versions of all documents are published and available (with the date of publication) at: www.vigeo.com (only those documents indicated 'web-site')


Documents

Transparency Matrix ARISTA TM 3 - aristastandard.org 2015/VigeoARISTA3...ARISTA Transparency Matrix 3.0 validity certificate: ... ALCAN, ALCATEL, ALLIANZ VIE, ARCE-LORMITTAL, AVENTIS