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institutional investors offered rating service

May 2008

A corporate responsibility rating service focusing on business risks has been created by Pirc.

The GovernancePlus Rating Service extends the UK-based governance adviser’s existing analysis to detailed consideration of companies’ social and environmental performance. It will cover the FTSE 100 initially and all UK listed companies by the end of the year.

The rating will ‘identify the best and worst five per cent of FTSE companies on corporate responsibility performance’, Pirc says, enabling its institutional investor clients to incorporate the data into investment analysis, benchmark good practice, and identify companies for engagement.

Researchers will assess the extent of forward thinking within a company, conflicts of interest, and the degree to which the corporate culture results in ‘equitable treatment of key stakeholders’ – assessed by a set of weighted factors such as executive pay compared with overall financial performance.

Alan MacDougall, Pirc’s managing director, said that this risk-based approach is ‘certainly what our clients are beginning to demand.’




Further Information
http://www.pirc.co.uk
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