RP2.1: ESG Incident Monitoring – Above Green

(1.8 points)

Intent

This indicator intends to identify whether the entity has a defined process in place to monitor and communicate any ESG-related controversies, misconduct, penalties, incidents, accidents or breaches against the codes of conduct/ethics to its stakeholders. The entity’s external communication process is one aspect of management controls necessary to provide investors with transparency about regulatory risks and liabilities. Recurring ESG-related misconduct, penalties, incidents or accidents can increase the risk profile of the entity as they can translate into reputational, compliance, and financial risks.

Requirements

Select Yes or No: If selecting Yes, select applicable sub-options.

Does the entity have a process to monitor and communicate about ESG-related controversies, misconduct, penalties, incidents, accidents or breaches against the codes of conduct/ethics?

Yes
- The entity would communicate misconduct, penalties, incidents or accidents to (multiple answers possible)
  - Clients/customers
  - Contractors
  - Community/public
  - Employees
  - Investors/shareholders
  - Regulator/government
  - Special interest groups
  - Suppliers
  - Other stakeholders: ____________
  - Describe the communication process (for reporting purposes only) (maximum 250 words)

________________________

No
- Provide additional context for the answer provided (not validated, for reporting purposes only)
  ________________________

Note: The information in RP2.1 and RP2.2 may be used as criteria for the recognition of 2020 Sector Leaders

Prefill: This indicator is the same as the one included in the 2019 Assessment and some sections have been prefilled from the 2019 Assessment. Review the response and/or evidence carefully.

Open text box: The content of this open text box is not used for scoring, but will be included in the Benchmark Report. Participate may use this open text box to communicate on the process the reporting entity intends to follow in order to communicate any ESG-related misconducts to its stakeholders.

Validation

Other: State the other stakeholder groups. Ensure that the other answer provided is not a duplicate of a selected option above. It is possible to add multiple other answers.

See Appendix 4 of the reference guide for additional information about GRESB Validation.

Scoring

This indicator is scored as a One Section Indicator. Evidence is not required. Fractional points are awarded based on the different selections of external stakeholders.

Other: Any ‘other’ answer provided will be manually validated and must be accepted before achieving the respective fractional score. If multiple ‘other’ answers are listed, more than one may be accepted in manual validation, but only one will be counted towards the score.

Diminishing Increase in Score approach: As indicated by the blue line, some elements of this indicator are scored based on a Diminishing Increase in Score approach, per additional checkbox selected.

Open Text Box: :The open text box is not scored and is for reporting purposes only.

Terminology

Accident: An unplanned, undesired event that results in damage or injury.

Codes of conduct/ethics: An agreement on rules of behaviour for the employees of the entity.

Controversy: Public allegation and/or litigation that could negatively impact the entity’s reputation.

ESG fines and/or penalties: Sanctions resulting from an illegal act or non-compliant behavior, which directly harms the environment and/or stakeholders of the entity.

Incident: An unplanned, undesired event with actual or potential adverse impacts.

Misconduct: Unacceptable or improper behavior, especially by an employee or organization.

Penalty: A punishment imposed for breaking a law, rule, or contract.

Special interest group: Organization with a shared interest or characteristic (e.g. trade unions, non- governmental organizations).

References

DJSI CSA 2019 - 3.4.1 Codes of Conduct

DJSI CSA 2019 - 3.4.4 Systems/Procedures

GRI Standards 2016 - 102-17: Mechanisms for advice and concerns about ethics

GRI Standards 2016 - 205-2: Communication and training about anti-corruption policies and procedures