Standard Ethics Aei
 | |
| Industry | Ratings |
|---|---|
| Founded | 2001 |
| Headquarters | Brussels, London and Rome, Belgium, UK and Italy |
Key people | Mrs.Blanche Ullens de Schooten (Chairman) |
| Services | Sustainability Rating |
| Slogan | Solicited Sustainability Rating |
| Website | Standard Ethics |
Standard Ethics is a sustainability reporting and rating agency based in Brussels and London which aims at promoting corporate ethics, Corporate Social Responsibility (CSR), Socially responsible investing (SRI) and corporate governance according to the principles and guidelines of the United Nations (UN), the Organisation for Economic Co-operation and Development (OECD), and the European Union (EU). Since 2012, it was an European Economic Interest Grouping (EEIG), a non-profit organisation based in Brussels. Before Standard Ethics methodology was applied in 2001, sustainability assessments were designed according to the model of stakeholder theory. Standard Ethics applies a system of non-subjective and well-defined values to sustainability ratings that promote the interpretations supplied by the UN, the OECD, and the EU.[1]
Standard Ethics in March 2013 becomes the first independent European Sustainability rating agency (CSR and Corporate Governance) following the decision to issue only rating on request ("solicited"), with a standard methodology.[2] The only case of unsolicited ratings is the statistical and not-for-profit analysis of the 40 largest Italian listed companies and countries that takes place annually since 2002 to provide a snapshot of the economic world in relation to ethical principles promoted by the large international organisations.[3]
History
The methodological approach of Standard Ethics dates back to 2001, as a research department of the Agenzia Europea d’Investimenti (AEI) SpA, an Italian holding company active in the sustainable investments. It becomes a separate entity after a spin-off in 2003. In fact, the current Standard Ethics, until April 2011, kept the acronym AEI next to its name.
The AEI Spa was an innovation in the financial sector and compared to other organisations that were dealing with CSR issues. The company was formed in 2001 by 65 members (private and institutional) as a Holding company incorporated under the Italian law (registered under no. 32548 of the Special Branch of the General List of Financial Intermediaries held by the Ufficio Italiano Cambi) [4]
The main changes were both in governance and management. The agency was entrusted by statute exclusively to independent directors from the property and appointed from among persons having good reputation and professional competence required by the Decree of the Minister of the Treasury for banks, with the provision prohibiting the simultaneous appointments and remuneration on the boards of the subsidiaries and subjected to a compliance department, who was attending the Board meetings to verify the compliance with a strict code of conduct and ethical behaviour. AEI Spa held 100% of AEI Sgr (Società di Gestione del Risparmio, the Asset Management Company), supervised by the Bank of Italy and Consob, registered under number 136 of the Register of Sgr (based in Milan). AEI Sgr was the first Italian to only manage ethical investment funds.[5][6][7]
It managed its own funds according to the sustainability ratings issued by the parent company. These ratings were issued annually to measure the distance between the issuer and the indications on governance (and business ethics) of the United Nations, the OECD and the EU. AEI Spa would also determine the maximum percentage of investment managers could perform in any issuer and could also even decide exclusions.[8][9] The AEI - differently from other agencies – did not define the concept of ethics but applies those guidelines and principles coming from the United Nations, OECD and EU. Approach which, in 2003, Standard Ethics inherited developing a non-subjective and pre-determined system of values, called sustainability or "institutional" approach.[10]
AEI Spa and AEI Sgr were also the first European companies active in finance to have in its constitution a formal compliance with the Universal Declaration of Human Rights of the United Nations. Probably still the only case. Finally, they introduced an evaluation system very simple, from the EEE to the single E, which is currently evolving into a standard adopted by other agencies.
The evolution into a rating agency
Standard Ethics (formerly Standard Ethics AEI) was formed from a spin-off of AEI that was ending its experience in asset management for various reasons, most of which are attributable to the difficulty of maintaining an independent and non-banking structure on the Italian market, even more as a result of the crisis after September 11, 2001. Even the ethical fund ETIF, which was among the balanced instruments the best performers in 2003, was dismissed by order of AEI and subscribers were repaid (with margins).[11][12][13]
The activity as a rating agency started at intense pace, because of the annual emission, the constant development of the methodology and the publication of scientific researches. In some cases the work of Standard Ethics was also anticipatory of future events. In fact, it was the only rating agency that suspended Parmalat in 2002 before the crash (and then slowly brought it to the top thanks to Bondi’s management, at least until the takeover by Lactalis). The rating department also saw there were some problems on the corporate governance of Juventus Spa since 2004, bringing the rating of the football club to a minimum, before the scandals.[14][15][16]
A criticism which also weighed on FIAT before the arrival of Luca Cordero di Montezemolo.[17]
Or, between 2004 and 2005 the agency published a research on the banking system denouncing the very risks in the system because of weak corporate governance and many conflicts of interest that then led to the banking crisis of 2008.[18][19][20][21]
In 2006, the agency worked on a new model of CSR and governance for CEEP (which includes more than 16,000 enterprises). Since January 2012, the management of Standard Ethics announced several changes including the use of virtual tools and platforms, stored in a server (which is also the headquarters) in Hanover Street in London, in the way of working and running the company. As of today, the only physical elements retained are an office in Brussels and a second one in Rome. This “virtual room” is called the Standard Ethics Virtual Building to serve through the web, and globally, all activities and to reduce emissions of CO2 and costs. The virtual building stores electronic files and has virtual offices for meetings with video conferencing and VOIP systems used by twenty people, from analysts to partners living in Europe and beyond. In 2013, Standard Ethics went through another transformation with the decision - for the first time in Europe – to only issue rating on request and to embark on pure rating agency in the field of CSR. The process that led to the current configuration lasted about a decade.
Sustainability Ratings
The sustainability ratings issued by Standard Ethics are the result of statistical and scientific analyses designed to provide a snapshot of the economic world in relation to the ethical principles promoted by the UN and other international organisations. Standard Ethics both supplies a frame of reference for studies on corporate social responsibility and promotes company ethics based on UN, OECD, and EU principles by highlighting the most virtuous cases. As a non-profit organization, Standard Ethics does not solicit the purchase or sale of securities by any issuer through its publishing of ratings.
Assessment System
Since 2002, the final assessments by Standard Ethics on the level of conformity of companies and nations to the baseline ethical values are expressed with eight different Ratings: EEE; EEE-; EE+; EE; EE-; E+; E; E-.[22]
- “EEE” stands for ‘above average’;
- “EE” for ‘average’;
- “E” for ‘below average’.
Those nations and companies that do not comply with the values expressed by the United Nations do not receive ratings and are included amongst the “suspended” issuers.
For the last ten years, the main Italian listed companies of the Borsa Italiana have been under observation by Standard Ethics in one of the largest public monitorings of Ethical Ratings and CSR in Europe.[23] Standard Ethics methodology has also been adopted by several organizations to disseminate CSR principles such as the 2006 CEEP Guidelines on CSR, which was based on the CEEP European project Discerno and the Standard Ethics methodology.[24]
National Ratings
The following 44 listings (in 2013, Standard Ethics for the first time assigns the rating to the Vatican City State):
| Country | Rating | Outlook | Date | |
|---|---|---|---|---|
 Argentina | E | February 2013 | ||
 Australia | EE+ | February 2013 | ||
 Austria | EEE- | February 2013 | ||
.svg.png){kind=small} Belgium | EE- | February 2013 | ||
 Brazil | EE- | February 2013 | ||
 Bulgaria | EE- | February 2013 | ||
 Canada | EE+ | February 2013 | ||
 Chile | E+ | February 2013 | ||
 China | E- | February 2013 | ||
 Czech Republic | EE | February 2013 | ||
 Denmark | EEE | February 2013 | ||
 Egypt | E- | February 2013 | ||
 Estonia | EE- | February 2013 | ||
 Finland | EEE | February 2013 | ||
 France | EEE- | February 2013 | ||
 Germany | EE+ | November 2013 | ||
 United Kingdom | EEE- | February 2013 | ||
 Greece | EE | Under monitoring | January 2015 | |
 Hungary | E+ | Negative | February 2013 | |
 Iceland | EEE | February 2013 | ||
 India | E | Under monitoring | January 2014 | |
 Ireland | EEE- | February 2013 | ||
 Israel | E+ | February 2013 | ||
 Italy | EE+ | April 2014 | ||
 Japan | EE | February 2013 | ||
 Luxembourg | EE+ | February 2013 | ||
 Mexico | EE- | February 2013 | ||
 Netherlands | EEE- | February 2013 | ||
 New Zealand | EEE- | February 2013 | ||
 Norway | EEE | February 2013 | ||
 Poland | EE- | Positive | February 2013 | |
 Portugal | EE | February 2013 | ||
 Romania | EE- | February 2013 | ||
 Russia | E | Under monitoring | April 2014 | |
 Slovenia | EE+ | February 2013 | ||
 Slovakia | EE | February 2013 | ||
 South Africa | EE- | February 2013 | ||
 South Korea | E+ | February 2013 | ||
 Spain | EEE- | February 2013 | ||
 Sweden | EEE | February 2013 | ||
 Switzerland | EE+ | February 2013 | ||
 Turkey | E+ | February 2013 | ||
 USA | EEE- | February 2013 | ||
 Vatican City | EE[25] | Positive | October 2013 |
References
- ↑ Massimo Pollifroni, "The “S-EPI MODEL”: A Theoretical Model that Links the E-Government Processes to the Instruments of the PSSR", eGovernment Workshop ’05 (eGOV05), September 13, 2005
- ↑ Ansa, 19 MARZO 2013: “Nasce la prima agenzia di rating etico in Europa. Le valutazioni della Standard Ethics saranno emesse solo su richiesta”.
- ↑ 20-03-2013. Quotidiano Nazionale, p.11: “Standard Ethics, rating sulla sostenbilità. Ecco la prima Agenzia UE.”.
- ↑ “E le società quotate faranno i conti con il rating Etico”, Corriere della Sera del 18-05-2002, Articolo di Massimo Sideri.
- ↑ “Un fondo bilanciato per l’Agenzia Europea degli Investimenti”. Il Mondo del 2 agosto 2002, Articolo di Daniela Stigliano.
- ↑ “E’ arrivato ETIF, il fondo fatto ad ONU. L’Agenzia Europea degli Investimenti scende in campo con un bilanciato internazionale. E con emissione di rating per i paesi OCSE.” Vita del 15 novembre 2002, Articolo di Francesco Maggio.
- ↑ “Fondi etici, perché non sono tutti uguali”. Repubblica, Affari e Finanza del 25 novembre 2002. Articolo di Mariano Mangia.
- ↑ “Finanza Etica, Aei assegna i rating-Paese”. Il Sole 24 Ore del 6 giugno 2002, Articolo di Federica Pezzatti.
- ↑ “Aei Holding, rating etico alle blue chip italiane. Eni la migliore del Mib 30. Milano Finanza del 4 luglio 2002, Articolo di Vitaliano D’Angerio.
- ↑ “Finanza Etica”, la Nazione del 24 luglio 2003, Articolo di Jacopo Schettini Gherardini
- ↑ “Aei Srg, i soci decidono se vendere, chiudere o aumentare il capitale”. MF del 18 Febbraio 2003, Articolo di Paola Valentini.
- ↑ “Aei: via la Sgr, meglio i rating.” Il Mondo, 30 maggio 2002.
- ↑ “l’Agenzia Europea degli Investimenti cambia pelle, trasformandosi da holding ad agenzia di Rating”, MF, 23 maggio 2002.
- ↑ “Dalla borsa avvertimento alla Juventus” Corriere dello Sport del 6 maggio 2006.
- ↑ “Autogol Bianconeri” Repubblica del 6 maggio 2006, di Ettore Livini.
- ↑ “Luciano e Cesarone” Repubblica del 9 maggio 2006, di Giuseppe D’Avanzo.
- ↑ “Ma l’Agenzia Europea degli Investimenti abbassa il rating del lingotto.” La Stampa del 22 dicembre 2002, Articolo di Andrea di Turi.
- ↑ “Banche e rating etico. Promosse solo le tre PoP per l’Agenzia Europea degli Investimenti” L’Arena del 26 febbraio 2004.
- ↑ “I banchieri bocciati in governance. La ricerca Aei sui sistemi di governo degli istituti di credito” Il Mondo, 29 aprile 2005, Articolo di Daniela Stigliano.
- ↑ “Aei, patti di sindacato sconosciuti in banca” Il Mondo Economico, aprile 2005, Articolo di Andrea di Turi.
- ↑ “Etica, chi vince tra i big”. Sole 24 Plus del 23 ottobre 2004, Articolo di Daniele Lepido.
- ↑ CSR Magazine, October 2002, p. 35
- ↑ Massimo Pollifroni, “Globalization and Glocalization: an Epistemological Analysis from Business Economics”, Association of Business Historians ABH Conference 2006 “Globalization and Business History” Queen Mary, University of London, 16th - 17th June 2006
- ↑ “EU INITIATIVES. Utilities pushed: Corporate Social Responsibility in Rome”, New Europe - The European Weekly, July 6–12, 2008, p. 11"
- ↑ http://en.radiovaticana.va/news/2013/10/28/vatican_city_state_receives_elevated_standard_ethics_rating/en1-741479