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Title:The outline of the assessment process
Date of publishing:September 20, 2011
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Category:Other content
Language:English
Also available in the following languages:Dutch, French

The outline of the assessment process

Data collection by Vigeo Eiris

To strictly separate the assessment and selection processes for the inclusion, exclusion or reconfirmation of companies in the Ethibel Investment Register and to guarantee quality and objectivity, Forum ETHIBEL has outsourced the research to Vigeo Eiris, a leading European rating agency. Vigeo Eiris independently performs the assessment based on the Ethibel specifications and reports the results to Forum ETHIBEL.

Norm-based screening and positive criteria assessment

The company is assessed on the basis of the positive criteria defined by Forum ETHIBEL in the Ethibel label specifications.These specifications, based on internationally accepted norms and conventions, consist of six study domains which cover all aspects of corporate social responsibility (CSR):human rights, human capital, the environment, social impact, market ethics and good governance.

Exclusion criteria assessment

Forum ETHIBEL applies exclusion criteria on the basis of which a company may be excluded from the Ethibel Register, depending on the level of involvement of the company in the concerned controversial products and activities. The controversial products and activities leading to a possible exclusion are: arms, tobacco, gambling, nuclear energy, hazardous chemicals, sex industry, GMOs, alcohol, animal maltreatment, landgrabbing, shale gas, tar sands, fossil fuels, non-certified timber and palm oil and food speculation 

Controversy screening

Forum ETHIBEL takes into account the involvement of the company in major issues or controversies. The weight of a controversy is assessed according to, inter alia, the frequency, seriousness, geographical spread, the number of involved workers or stakeholders, the non-responsiveness of companies, companies’ non-negotiation attitude, and the potential financial impact and further potential risk exposure.

Rating

After the assessment a rating will be assigned to the company which is the result of the individual performance on the different criteria. The final evaluation, rating and selection of companies for the Ethibel investment register is the competency and responsibility of Forum ETHIBEL solely, who is supported by the assistance of the independent experts of the Register Committee. The Register Committee of Forum ETHIBEL evaluates the assessments and orders additional research, if required. The Register Committee then advises the Board of Directors about the inclusion in the Investment Register.  The final decision is made by the Board of Directors.

Update and monitoring

Sector updates and re-assessments of the CSR profile of companies are executed every 18 months. Companies are permanently monitored for their CSR performance in the case of controversies or disputable activities.

Update of the Ethibel Investment Register

The Ethibel Investment Register is updated 6 to 7 times a year.

Communication

Every company is kept up-to-date about the assessment and will be granted full access to the assessment report. A short summary is also published.

 

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