This Local Broadband Firm Now Has an “A” ESG Rating—Here’s What it Means
Converge ICT Solutions previously received a rating of “BBB” in the global environment, social, and governance (ESG) index. We look into what these ratings mean for businesses.
Converge ICT Solutions has seen a lot of success in previous years, given its PHP 33.70 billion revenue, 1.8 million subscribers, and 54% market share as of 2022. What’s more, the Dennis Anthony Uy-owned company recently added another achievement to the list after it was awarded a higher rating in the MSCI’s environmental, social, and governance (ESG) ratings assessment review.
Yes, Converge has received a rating of “A” after previously receiving a rating of “BBB.”
According to a report from Inquirer, Converge Executive Vice President and Chief Sustainability Officer Benjamin Azada has said in a statement that “Since announcing our sustainability commitment in 2021, we have been laser-focused on managing the ESG topics that matter most to our stakeholders, particularly our customers, our employees, and our investors.”
“This rating upgrade provides external validation of our efforts,” The Converge EVP notes. “Our aim is to be an industry leader in addressing sustainability-related risks and opportunities.”
What are the MSCI ESG Ratings?
The ESG Ratings “aim to measure a company’s management of financially relevant ESG risks and opportunities,” according to finance company MSCI.
Ratings start from laggard (CCC and B), which means that a company that receives these two ratings is “lagging its industry based on its high exposure and failure to manage significant ESG risks.” It is followed by average (BB, B, and A), and this rating is given to “a company with a mixed or unexceptional track record of managing the most significant ESG risks and opportunities relative to industry peers.”
The rating range ends with the leader (AA and AAA), which is awarded to “a company leading its industry in managing the most significant ESG risks and opportunities.”
Why Companies Should Increase Their ESG Rating
Having a high ESG rating could pave the way for more investors to be interested in the company, since “higher ESG performance correlates with higher returns, lower risk, and long-term business sustainability“. What’s more, this can increase the company’s share price.
Companies who are unsure about how they can improve their ESG rating can look to Converge as an example. After all, to improve its ESG rating, Converge made sure to implement programs that are environmentally friendly and have a positive social impact. These include switching to renewable energy sources, as well as improving privacy and data security through cybersecurity measures that are focused on safeguarding against data breaches.