ESG risks oriented metrics

The overall score reflects the exposure level of the Assessed Unit to the ESG (Environment, Social, Governance) risks.

The score is a quantitative representation of the extent the Assessed Unit has integrated the Social Responsibility fundamental principles and the GIF Framework into its management system (culture, strategy, processes and results) and the risk exposure level in each aspect that could result into adverse impacts for the relevant Stakeholders (employees, customers, environment, society)..

The overall score is a result of the combination of a grading system per Aspect.

Score per Area: The Assessor assigns a score from 0 to 100 to each area within an Aspect.taking into account the “likelihood” and the “consequence” of an event.

The meaning the each score depends on the Aspect (Management System or Risk Area) as explained in the table below:

Score

Level

Explanation

0-20

Very Poor

MS: No identifiable formal approach established;

Risk: Very high and exposure to catastrophic events

21-40

Poor

MS: Evidences of an approach established, sporadic implementation.

Risk: High, exposure to severe events

41-60

Average

MS: Sound, formal and systematic approach established and implemented, no evidences of improvement

Risk: Acceptable, low esposure to core risks and moderated exposure to «non core» risks

61-80

Good

MS: Approach established and implemented, evidence of improvement

Risk: Low. No exposure to «core risks» and exposure to «non core» risks

81-100

Very good

MS: Approach systematically implemented and improved

Risk: Very Low. No exposure to both «core risks» and «non core» risks

Rating per Aspect: The score per area are added up and transformed into a scope per Aspect.

The assessment is passed if a minimum average score on the core element within each criterion is achieved (The “core elements” of the GIF Framework are addressed by the OECD Due Diligence Guidance for responsible supply chains).

Overall score: Depending on the different combinations of ratings per Aspect, the Organization will receive a final Score representing the overall risk level exposure in all the social responsibility aspects.

Risk exposure Explanation

81-100

Very Low

The supplier is exposed to very low risks in every SR aspect and is able to monitor and treat without exposing the Buyer to any unexpected cost and loss.

61-80

Low

The supplier is exposed to low risks in every social responsibility aspect and is able to manage them without exposing the Buyer to relevant unexpected cost and loss

41-60

Acceptable

The supplier is exposed to acceptable risks in every social responsibility aspect but needs to be periodically monitored to prevent any escalation.

21-40

High

The supplier is exposed to high risk related in different social responsibility that can result into high costs and losses for the Buyer

0-20

Very High

The supplier is exposed to extremely high risks related to its SR also in the “core element” that can result into extremely high costs and losses for the Buyer and can spoil its reputation