Improving ESG rating performance
Impacts and benefits
- Optimised easyJet’s ESG ratings
- Enhanced ESG disclosures in the annual report that addressed investors and other stakeholders’ interests
- Provided strategic recommendations on the airline’s approach to sustainability
The hard work and support of the Simply Sustainable team throughout the ESG and materiality projects was very useful. The outputs have informed our approach to sustainability and played a key role in improving the sustainability chapter of our 2019 Annual Report.Mark Ramsden Head of UK Corporate Affairs, easyJet
Companies that score well on environmental social and governance (ESG) ratings are known to better anticipate future risks and opportunities, be more disposed to longer-term strategic thinking, and able to deliver long-term value. Investors often use ESG ratings as part of a broader analysis, or to positively screen for ‘best-in-class’ companies and negatively screen out worst-performing companies. If a company appears low down its industry list, it could result in exclusion from ESG investment products.
Working closely with the sustainability team at easyJet, we engaged with two widely used ESG rating providers – MSCI and Sustainalytics – to identify opportunities to improve its scoring and approach to managing material issues. We began by evaluating the airlines existing performance in each rating, as well as the criteria for scoring each of ‘E’ ‘S’ and ‘G’. We analysed the results and mapped them against the company’s existing ESG strategy and disclosures.
Our analysis identified opportunities across important areas of easyJet’s performance and provided easyJet with a practical action plan to improve its scoring and approach year-on-year.