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FTSE4Good ESG Rating Scores for Telecom Italia

October 12, 2011


FTSE4Good ESG Ratings Scores for Telecom Italia, September 2011 review

Included below there are updated scores and ratings as of the September 2011 review.

Overall ESG Rating

Absolute Score (0-5)

4.1

Supersector Relative (1-100)

94

Pillar Score
Absolute Score (0-5) Environment
5
Social
5
Social
5
Supersector Relative (1-10) Environment
5
Social
10
Governance
6
Theme Score (0-5)
Environmental
Management
5
Climate
Change
na
Human & Labour
Rights
5
Supply Chain
Labour Standards
na
Countering
Bribery
3
*Corporate
Governance
4
*Although Corporate Governance is included in the ratings, it is not one of the inclusion requirements for the FTSE4Good Index Series at the moment.
Theme Risk (0-3)
Environmental
Management
1
Climate
Change
0
Human & Labour
Rights
1
Supply Chain
Labour Standards
0
Countering
Bribery
3
*Corporate
Governance
2
*Although Corporate Governance is included in the ratings, it is not one of the inclusion requirements for the FTSE4Good Index Series at the moment.

Theme Level

Risks (0-3)

Each company within the eligible universe will be assigned a risk classification of 0-3 (where 3 is the highest risk) for each of the six ESG themes. The risk level is determined by a company’s exposure to potential risk in a particular ESG theme, which can be identified through its business sector, country of operation, and types of contract.

Score (0-5)

Based on the assigned risk classification, companies are evaluated against the criteria for each theme, and scored between 0 and 5. A score of 3 is the level for inclusion in the FTSE4Good Index and is referred to as ‘Good Practice’, and a score of 5 is considered best practice. Where the risk assigned to a company is 0 (‘not applicable’), no scores will be assigned for that particular theme (na), and these themes will not be taken in account when calculating Pillar and Overall scores.

Pillar Level

Absolute Score (0-5)

The theme level risks and scores are used to calculate the absolute score at the Environmental, Social and Governance Pillar level.

Supersector Relative Score (1-10)

The absolute score at each ESG pillar is readjusted to be relative to its ICB Supersector peers, where 1 is the lowest and 10 is the highest score.

Overall ESG Rating

Absolute Score (0-5)

The pillar level risks and scores are used to calculate the absolute overall ESG rating for each company.

Supersector Relative Rating Score (1-100)

The absolute overall ESG rating is readjusted to be relative to its ICB Supersector peers, where 1 is the lowest and 100 is the highest score.