The Corporate Monitor database is Australia's
most extensive source of public information about the non-financial
performance of major Australian companies. We collect data from
a very wide range of reputable sources covering a wide range of
issues. Data is sent to CEOs for their review prior to publication.
Our data is not dependent on a company's willingness to respond
to a questionnaire or an agreement to keep relevant information
off the record.
Our research services are built from the Corporate Monitor
ESG Company Ratings; published monthly in Ethical Investor Magazine.
We currently maintain star ratings for Environment, Social and Governance on all operating companies in the ASX 300.
1. Involvement in Gaming,
Defence or Uranium
Corporate Monitor has reviewed all companies in its
universe using its database to identify those
involved in these activities. A broad approach has been taken to
cater for clients wishing to adopt a strict definition to each ethical
issue. Companies are classified as having Direct or Indirect involvement
Direct - core business of owning or operating a gaming related business
or manufacture and supply of gaming equipment and systems.
Indirect - servicing gaming equipment and systems or owning/operating
a gaming related business as a non-core activity.
Direct - manufacture, distribution or sale of alcoholic beverages
as a core business.
Indirect - sale of alcoholic beverages as a non-core business or core business in major alcoholic drink inputs (eg. malt, wine grapes).
Direct - manufacture and distribution of tobacco related products.
Indirect - sale of tobacco related products as a non-core business.
Direct - supply of weapons or weapons components.
Indirect - manufacture or sale of equipment, infrastructure, IT,
communication services, transport or logistics or maintenance services.
Direct - uranium exploration, mining, or generation of power.
Indirect - use of uranium for other purposes (e.g. in the health
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2. Corporate Monitor ESG Company
The ratings process gathers a wide range of information
to gain a perspective on the environmental impact, social engagement
and corporate governance of each company.
Information sources can be summarised as: -
Details on the environmental and social impact of its
products and services.
Company reports on its contribution to the environment or
Reports from third party sources (such as regulators, NGO's
and reputable commentators) on its impact on the
environment, contribution to society or corporate
All information dates from 1 January 2001 to current date.
The ratings process rewards companies that demonstrate
a range of actions that overcome any inherent negative environmental
or social impacts of their products and services. It also rewards
companies whose activities have an inherently positive environmental
impact or social purpose.
Corporate Monitor has also taken account of each company's
industry sector. For example, companies that are fairly neutral
in terms of environmental impact (such as technology and service
industries) are not expected to make as detailed environmental reporting
or management as companies which have a major environmental impact
(such as mining companies). Some adjustment is also made for the
size, lower profitability and shorter history of smaller companies.
Three separate ratings are provided: -
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3. Individual Ratings Descriptions
Environmental impact of products and services - uranium,
logging, mining, greenhouse gas, plastics, packaging,
recycling, genetically modified food and energy.
Penalties for environmental compliance.
Pollution levels to air, land, and water
Community relations and philanthropy.
Involvement in weapons and defence equipment.
Products associated with social problems -
alcohol, tobacco, gaming.
Employee Relations – occupational health & safety, employee share schemes, discrimination, unfair dismissal and union disputes.
Legal compliance - corporate governance, trade practices,
Instances of organised shareholder activism or complaints
on behalf of shareholders.
Governance awards and commentators.
Executive, Director and Auditor remuneration levels.
Board committee structures and independence
A commonly used 5 Star Rating System is used. A
3 Star Rating should be considered an acceptable level of performance
in each area. The Corporate Monitor ESG Company Ratings should not
be taken as an indication of investment merit.
An interpretation of each rating follows: -
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