CSSRQS 1'0 SRI Quality Assurance

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CSSR-QS 1.0 SRI Quality Assurance
also
representing

• TBLI 2003, Amsterdam, November 6-7,
  2003,Workshop Corporate Ratings
• A Quality Standard for CorporateSustainability
  and Responsibility Research
• Stephen HINE (EIRIS), Herwig Peeters (ETHIBEL),
  Kirein FRANCK (imug)

2

ADVANCING SOCIALLY RESPONSIBLE INVESTING
Developing a Voluntary Quality Standard for
Corporate Sustainabilityand Responsibility
Research
CFIE Centre Français dInformationsur les
Entreprises
3
Three sets of complaints inthe disclosure
triangle

• Lacking responsiveness
• Greenwashing reports, cherry picking
• Insufficient strategic integration of CSR

• Boring questionnaires
• Annoying phone calls
• Too many questionnaires
• Non harmonised conclusions

Companies
CSR/SRIresearch
Investors

• Avoiding financial issues
• Confusing methodologies
• Lack for long-term track record

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CSRR-QS 1.0

• A quality standard comprising guidelines and
  rules, commitments and proofs on the transparency
  and quality and on the accountability and
  verifiability of the processes involved in
  Corporate Sustainability and Responsibility
  Research (CSRR)
• Drawn up by a number of independent CSRR Groups
  mostly supporting and servicing SRI
• The first quality standard conceived and worked
  out at sector level in the field of CSR and SRI
  research and analysis

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Voluntary Quality Standard (1)

• Stage 1
• Setting the standard
• 17 CSRR Groups, working in 4 Project Groups
  (WG)WG1 Verifiable IndicatorsWG2 Quality
  ProceduresWG3 Integrity RulesWG4
  Implementation

• Stage 2Stakeholder consultationPiloting within
  CSRR Groups Expert consultationStakeholder
  dialogue
• Feedback processes

www.csrr-qs.org
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Voluntary Quality Standard (2)

• Stage 3Set-up verification processAccreditation
  instituteLegal status juridical set up
• Preparing the verification processSelection of
  certification body

• Stage 4
• Execution of the audit and verificationIndividua
  l CSRR Group guidance and initial auditMain
  auditAudit and certification

www.csrr-qs.org
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CSRR - QS 1.0

• Although currently European, in due course
  international CSRR Groups will be engaged with,
  in order to encourage participation in, and
  adoption of, the standard. A fully international
  standard is the objective.
• Prior to the setting-up of the standard a
  detailed survey was undertaken in order to make
  an inventory of existing practices on the level
  of quality management
• Initiated - in part - by the EC, Employment and
  Social Affairs DG as the outcome of the project
  Developing a Voluntary Quality for SRI Research

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The EC Green Paper Promoting a European
frameworkfor Corporate Social Responsibility
defines CSR as ...
WHAT

• taking up the triple bottom line approach by
  going voluntarily beyond legal requirements in
  offering fair deals to stakeholders while having
  a dialogue with them

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A new framework ...
EU APPROACH
dialogue
instruments
business case
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Convergence, diversity and transparency of CSR
tools

• An emerging market with many specialised
  screening agencies, using different tools and
  metrics
• Companies overloaded with excessive information
  requests
• Convergence between indicators developed by
  companies and the criteria used by analysts
• Ensure quality and objectivity, not only on the
  basis of the information submitted by the
  management, but also by the stakeholders
• External audit and internal quality procedures
  should be used to assure accuracy in the research
  and assessment processes

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The Ten Commitments

• CSSR Groups commit to
•  
• 1 Independent sources assess/rate companies
  using more than company-provided information,
  such as independently collected data, regulatory
  sources, and information from stakeholders
• 2 Global activities ensure that
  assessments/ratings include the relevant global
  impacts and operations of the quoted company
• 3 Beyond compliance use a research methodology
  which allows identification of best practices and
  'beyond compliance' performance.
• 4 Social and environmental include criteria
  covering environmental and social areas
• 5 Balance ensure a balanced approach to
  corporate assessment/ratings by balancing
  quantitative and qualitative indicators,
  management oriented and performance indicators,
  past and current performance

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The Ten Commitments

• 6 Relevance/Materiality ensure
  assessments/ratings capture issues material to or
  relevant for the sustainability and
  responsibility of that company
• 7 Consistency and comparability ensure that the
  criteria and methodology are applied equally to
  comparable companies
• 8 Stakeholder involvement actively include
  inputs and information, wherever possible, from
  relevant stakeholders
• 9 Up-to-date ensure assessments of companies
  are updated
• 10 Transparency be transparent about the
  methodology

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Integrity principles and ethical commitments of
CSRR - QS 1.0

• 1 Independence
• 2 Professionalism
• 3 Accountability
• 4 Objectivity
• 5 Impartiality
• 6 Equal treatment
• 7 Responsible relationships
• 8 Selective disclosure
• 9 Avoidance of personal interest

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CSRR QS 1.0
Up-to-date lists of signatoriesand
specifications on standardsand guidance may be
obtainedonly on the website www.csrr-qs.org(d
ecember 2003)

• quality management systems transparency
  rules assurance guidelines terms of
  reference verification processes

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Some elements of the CSRR QS 1.0 (1)

• Independence, impartiality and integrity
• Confidentiality
•   
• Organisation and management
•  
• Well established quality management systems
  Policies and objectives
• Effective and appropriate quality systems
• Quality manual and well maintained
  documentation related to quality control
• Quality manager
• Qualified personnel
• Feedback and corrective
• Review of the quality system at appropriate
  intervals
•  

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Some elements of the CSRR QS 1.0 (2)

• Research standards and indicators
• Research and evaluation methodologies
• Clear systems and tools for managing its
  research processes First instrumental basis for
  quality management and control
  CSRR-QS-logbook
• Second instrumental basis CSSR Groups
  company data record keeping system Adequate
  documented and auditable instructions on the
  CSRR data collecting process 
• Protocol regarding the relation with companies
• Adequate documented and auditable
  instructions on the CSRR data processing
• Adequate documented and auditable
  instructions on the CSRR evaluation processes

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Some bricks of the CSRR QS 1.0 (3)

• The CSRR-TM, the Transparency Matrixis the
  calibrated instrument to disclose the main
  features of their research and evaluation
  approach and methodologies
• Stakeholder involvement
• Stakeholder dialogue is considered to be a
  quality issue with respect to CSRR processes
  Important component of the standard Clear
  policies and processes. A variety of ways in
  systems and methodologies is possible
  Continuous improvement of its stakeholder
  involvement processes targets
• Reports and other outputs and communications
• Sub-contracting
• Complaints and appeals
• Co-operation

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Social basis through stakeholder dialogue

• The social basis and the added value originate
  from stakeholder communication, possibly on
  different levels
• Data collecting
• Double checking of information
• Debate on criteria and methodology
• Quality control
• Evaluation, rating, ranking