RepRisk ESG Risk Rating

• The RepRisk Rating (RRR) is an index with ratings from AAA to D, which facilitates the benchmarking and comparison of companies within a sector and within a group of similar companies, and which measures company procedures and processes for ESG and Governance. The RRR is a support for decision-making in the areas of risk management, compliance, investment management and supplier evaluation.

The methodology combines 2 factors:

1. The Specific ESG Risk of a company: measured by the Peak RepRisk Index (RRI)

2. The Country-Sector ESG risks, measured against the average Country-Sector risk calculated by:

•  The value of the exposure to ESG risks of the headquarters (weighted at 50%): this takes into account the Country-Sector risk of the country and primary sector where the company is headquartered.
• The value of the international exposure to ESG risks (weighted at 50%): this takes the average of all the Country-Sector specific ESG risks where the company has operations.