Morley Fund Management (Morley) today releases its first Sustainability Matrix. This Matrix ranks FTSE 100 companies according to social and environmental criteria and provides a new measure of business sustainability.
Morley Fund Management (Morley) today releases its first Sustainability Matrix. This Matrix ranks FTSE 100 companies according to social and environmental criteria and provides a new measure of business sustainability. These gradings:
- Encourage companies to improve their Social and Environmental Performance
- Protect and increase Shareholder Value by adding another tool for the analysis of companies
- For the first time provide clear and transparent analysis of companies' social and environmental policies
- Encourage and stimulate debate and continue raising awareness of Corporate Social Responsibility
Keith Jones, CEO at Morley Fund Management, says:
"Morley increasingly believes that companies operating in a socially and environmentally responsible manner will be most likely to succeed over time. Our Sustainability Matrix breaks new ground in promoting improved performance. It focuses on engagement with management and provides transparent information for investors. By encouraging companies to improve their sustainability rating we aim to protect and enhance shareholder value."
These ratings are the outcome of over a year's in-depth research of the FTSE 100 companies by Morley analysts. The Matrix ranks companies according to Business Sustainability and Management Vision and Practices
Business sustainability is rated from A to E. An A grade is awarded to companies providing a 'sustainability solution' to major environmental or social issues - such as renewable energy, healthcare and education. An E grade indicates a business fundamentally incompatible with sustainable development. Companies such as GlaxoSmithKline (A2), BG (B2), United Utilities (B2) and Pearson (A3) all gain strong grades on product sustainability.
Management vision and strategy is graded from 1 to 5. Companies awarded a grade 1 have a clear vision of sustainable development and are actively working to achieve it. The poorest grade, 5, denotes management policies and practices incompatible with sustainable development and the concept of corporate responsibility. BP (D2), Shell (D2) and Allied Domecq (D2) gain strong gradings for management, vision and strategy. No FTSE 100 company gains a 1 or 5 grade.
Morley uses the Matrix ratings as a basis for engagement with companies to encourage improvement and as a tool to select companies for inclusion in the Morley Sustainable Future Funds. (The stocks in the shaded grey areas can be held in these funds).
Clare Brook, Director of the SRI team at Morley outlines how the Matrix supports the team's future investment strategy:
"Many companies now recognise the long term financial risks they face by ignoring environmental and social impacts, but believe the City to be entirely uninterested in sustainable development. Publishing the Matrix will contribute to the debate on the compatibility between economic prosperity and sustainable development. It demonstrates for the first time, that the City has a vested interest in working with companies to develop an economic model where sustained returns are rooted in sustainable development."
-Ends-
| For further information please contact: | |
| Morley Fund Management | |
| Daniel Longden, Communications | 020 7809 8625 |
| Toby Belsom, SRI analyst | 020 7809 6189 |
| Gavin Anderson & Co | |
| Liz Morley | 020 7554 1479 |
| Lindsey Harrison | 020 7554 1447 |
Notes to editors
The Sustainability Matrix
Morley SRI Appraisal Matrix: FTSE 100 Companies (Current FTSE100 Index) (as at 01 May 2002)
Download the Sustainability Matrix in PDF format PDF (20KB).
How the matrix works:
Business sustainability is rated from A to E. An A grade shows that a company's core business is a sustainability solution - providing some type of social or environmental benefit. Sectors such as renewable energy, healthcare and educational services gain grade A. An E grade shows the business is fundamentally in conflict with sustainable development.
Management vision and strategy is graded from 1 to 5. 1 is a rating of excellence showing the company has a clear vision of sustainable development and is working hard to achieve it. The poorest grade, 5 shows the business is fundamentally incompatible with sustainable development and corporate social responsibility.
Why now? Key drivers of corporate uptake of the principles of sustainable development
Download the table in PDF format PDF (10KB)
What the companies say:
"At BG, we place great importance on providing energy to the economies we serve with the minimum environmental and social impact. Dialogue with sustainability experts is fundamental if we are to understand fully the expectations society has of energy companies. Morley's experts contribute to that dialogue, while their sustainability and environmental management matrix brings valuable clarity to the analysis."
Margaret Mogford - BG Group plc
An expert advisory panel
The research and ratings process is guided by an independent advisory committee of leading experts in issues of sustainable development:
- Deborah Leipziger, Corporate Responsibility Consultant, formerly European Director of Social Accountability International
- Sir Geoffrey Chandler, former Chairman of Amnesty International UK
- Jonathon Porritt CBE, UK Government advisor on Sustainability
- Lord Thomas of Macclesfield, former Chairman of Co-operative Bank and North West Development Agency
About Morley Fund Management
Morley Fund Management ('Morley') is an independently managed, London based, asset management business with over Ł107 billion under management. It has investment management operations in London, Tokyo and Singapore and an associate office in Boston*.
Morley is a wholly owned subsidiary of the CGNU Group and manages both institutional and retail funds under the Morley brand. It also acts as investment manager for a range of retail investment funds, marketed in the UK under the Norwich Union brand. It aims to be a leader in Socially Responsible Investment.
CGU plc and Norwich Union plc merged on 30 May 2000 to create CGNU plc, the UK's largest insurance group and one of the top-five insurers in Europe with substantial positions in other markets around the world, making it the world's seventh largest insurer based on gross worldwide premiums.
*Norwich Union Investment Management, a CGNU Group company
Further information about Morley Fund Management can be found at www.morleyfm.com
Issued by Morley Fund Management Limited.
Morley Fund Management is a business name of Morley Fund Management Limited, registered in England No. 1151805 and Morley Investment Services Limited, registered in England No. 1973412. Both are members of the Norwich Union Marketing Group, members of which are regulated by the FSA for life assurance, pensions and investments. Morley Investment Services Limited is a member of the Investment Management Association. Registered Offices: No. 1 Poultry, London EC2R 8EJ. Both are CGNU Group companies.
For correspondence please contact us at Morley Fund Management, No. 1 Poultry, London EC2R 8EJ.