Are the top ESG tech leaders lagging behind on impact?
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PARIS, March 30, 2023 /PRNewswire/ -- impak Analytics presents an analysis of the impact of the three largest technology companies in the world in 2022.
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Doubts about the reliability of ESG ratings
Among big tech companies, Apple, Microsoft and Alphabet have some of the best ESG (or ESG, Environmental, Social and Governance) scores in the world. According to Yahoo Finance, they rank 7th, 3rd and 1st, respectively, among the top 12 ESG companies in 2022.
However, its impact analysis on ESG factors shows an unexpected conclusion. After analyzing Apple, Alphabet, and Microsoft using an impact approach, each has an Impak Score™ of less than 200 points out of 1,000, putting them in the average rather than in the lead. To put things in perspective, the median impak Score™ for impak's large-cap universe is 145 out of 1,000 points, with best-in-class scores above 400.
The impact approach to respond to the needs of investors
"Assessing the global impact of a company requires a holistic analysis [...], and traditional financial metrics alone do not provide a complete or exhaustive picture of the impact of an entity. A narrow focus can be detrimental to the achievement of the 17 Sustainable Development Goals of the United Nations or the profitability of investors in the long term".
The study aims to demonstrate (i) why the ESG approach seems to have not yet adequately assessed the global impact of the three companies, (ii) to what extent the consideration of the numerous and serious controversies of Apple, Alphabet and Microsoft is crucial for the understanding of the sustainability-oriented investor, and (iii) why the mitigation of its negative impacts does not equate to a positive impact.
The tipping point of sustainable finance
Beyond the financial materiality of the ESG assessment, the analysis shows that Apple, Alphabet and Microsoft are not true advocates of sustainability as a whole
This is a crucial time for non-financial reporting, and as the study shows, the market has all the tools, theories and data to prevent large-cap companies from continuing to receive misleading ESG ratings.
A must-read for any investor who wants to avoid reputational risk and have a measurable impact on both the environment and society.
Download the full reportMore information on impak here Source: Impact statements from Alphabet, Apple and Microsoft
Media contact Stéphanie Bernier-Monzon stephanie.bernier-monzon@impakanalytics.com 1 438 886 8796
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