Fiber broadband and technology provider Converge ICT Solutions Inc. (PSE: CNVRG) has earned an upgraded Environmental, Social, and Governance (ESG) risk rating, and is now classified as ‘low risk,’ based on the recent assessment by ESG and corporate governance analytics firm Sustainalytics.
The company improved its overall ESG risk score to 19.6 or ‘low risk,’ which reflects the reduced level of unmanaged risks it has, from its ‘medium-risk’ rating of 23.4 last year and ‘high-risk’ rating of 30.7 in 2021. The lower score also indicates a lower likelihood of ESG issues adversely affecting the company’s economic value.
“Over the past year, we have strived to strengthen our policies and practices in our pursuit of sustainability. This upward ESG rating affirms our commitment to long-term value creation by managing potential risks related to our impacts on people, the planet, and prosperity,” said Converge Chief Strategy Officer and Chief Sustainability Officer Benjamin Azada.
In the said ESG Risk Analysis, Converge was classified as ‘strong’ in terms of risk management, with a score of 54.0, which indicates how well it handles relevant ESG issues through robust programs, policies, and practices.
Converge has a Board Risk Oversight Committee that looks after its ESG strategy development and implementation. Additionally, Converge adopted a Board Diversity Policy that ushers the selection of its Board of Directors without regard to gender, ethnicity, nationality, or culture. This was exemplified by the appointment of former Senior Associate Justice Estela M. Perlas-Bernabe as another female member of the Converge Board.
Likewise, the company has focused on driving responsible business practices across the organization by driving adherence to its Code of Business Ethics.
Concerning environmental risks, Converge has shifted to 100 percent clean energy for its Pasig and Pampanga data centers, while relevant infrastructure investments are made to strengthen resilience to natural disasters and manage physical climate risks to its networks.
The said ESG Risk Rating has placed Converge in rank 33 out of the 235 telecommunications companies evaluated by Sustainalytics around the globe.
“Converge recognizes the importance of proactive risk management in achieving both our company goals and meeting the interests of our stakeholders. As the business expands, we will continue to strengthen our practices to manage imminent and emerging risks within the organization,” said Converge VP and Head of Enterprise Risk Management Jerome Mario Orfano.
Last June, Converge also attained a higher score on the ESG metrics of global investment research firm MSCI, with a rating of ‘A’ from its previous MSCI ESG rating of ‘BBB.’
The MSCI ESG Ratings evaluates global public and a few private companies on a scale of AAA (leader) to CCC (laggard), according to exposure to industry-specific ESG risks and the ability to manage those risks relative to peers.
With the said improvement, Converge reflected its resilience to ESG risks, cementing its reputation as a responsible business focused on long-term value creation for its stakeholders.