FIVE Holdings’ Remarkable ESG Rating: What Sets Them Apart?
ESG or Environmental, Social and Governance ratings evaluate a company based on its sustainability and the societal impacts it has on the world around it. They are intended as a way for investors and others to determine whether a company is living up to their environmental obligations, whether it treats its employees fairly and whether the company’s corporate governance is able to balance the interests of its stakeholders with the interests of the world beyond the boardroom.
A company’s true performance cannot always be captured by traditional financial metrics. That is where ESG ratings come in. The ESG rating considers those financial metrics, but only as 1 part of a larger evaluation that examines the company’s place in the business ecosystem and whether it is helping to move society as a whole forward or is perhaps holding it back.
The scores a business receives in the different areas of ESG evaluation are then added together creating an overall score that paints a more holistic picture of the company and its prospects than you could get from simply looking at the books. Smart companies take less-than-stellar ESG scores to heart and set about to improve their performance, enhance their reputation and optimise their financial prospects.
Institutional Shareholders Services or ISS was founded in 1985 as a proxy advisory firm that evaluates companies. ISS collects data on businesses from online reporting, corporate filings, regulatory filings, social media, government agencies and NGOs to produce their ESG rating.
ISS is one of the most trusted corporate advisory firms on the planet with more than 3,400 clients. Its letter grade system ranges from A-plus to D-minus with only one company ever achieving an “A” score. That company is FIVE Holdings, founded and led by billionaire entrepreneur Kabir Mulchandani.
How FIVE Achieved Their Standout ESG Score
FIVE’s unprecedented “A” ESG rating is a direct reflection of the company’s ironclad commitment to sustainability and their simultaneous belief that stakeholder value does not need to be compromised by a commitment to planet earth. Indeed, Kabir Mulchandani and his team have always believed quite the opposite: that there is almost unlimited untapped value in embracing sustainability and social responsibility, which ultimately informs and enriches the company’s corporate governance profile.
The company’s Green Financing Framework is but another expression of this same commitment to both planet and people. The Framework is closely aligned with Green Bond Principles administered by ICMA and Green Loan Principles (GLP) administered by the Loan Market Association and incorporates core principles of those programmes, including those regarding external review.
In an age when companies great and small are striving to find a balance between stakeholder interests and the interests of the planet and future generations, FIVE Holdings demonstrate beyond a shadow of a doubt that such a balance is achievable. For that reason alone the business world owe FIVE Holdings, and its legendary leader Kabir Mulchandani, a debt of gratitude.