Bucharest Stock Exchange reveals first ESG scores for listed companies

The first ESG (Environmental, Social, and Governance) scores on the local capital market are available on the BVB Research Hub platform of the Bucharest Stock Exchange (BVB), a release shows.

The scores are part of the reports prepared by Sustainalytics, one of the global leaders in the segment of ESG research and ratings, based on the collaboration with BVB, initiated in 2020.

The scores are published on a voluntary basis and eight of the companies listed on the Bucharest Stock Exchange joined the project at this initial stage: Antibiotice Iasi (ATB), BRD Groupe Societe Generale (BRD), Farmaceutica Remedia (RMAH), Nuclearelectrica (SNN), OMV Petrom (SNP), TeraPlast (TRP), Transgaz (TGN) and Bursa de Valori Bucuresti (BVB).

‘The ESG analysis and the criteria considered for the development of ESG indicators are very complex, that exceed the legal reporting requirements and require a special effort from the companies side. Most issuers have made significant progress in recent years, and many of them are currently pursuing projects to improve non-financial reporting and, implicitly, ESG scores. The publication of the first ESG scores at BVB is just a first step in our much larger project, which began in 2020, and we expect more and more listed companies to join us in the next period. We are convinced that this initiative will make a positive contribution to the long-term development of the Romanian capital market’, said Adrian Tanase, CEO of Bucharest Stock Exchange.

‘Sustainability is an integral part of OMV Petrom’s 2030 strategy. In any society, the role of companies should go beyond business. This means, on the one hand, integrating strategies on environmental, social and governance issues into the way companies do business and, on the other hand, increasing transparency on these issues. Investors, our employees, customers and, finally, the whole company expect this from us’, said Christina Verchere, CEO of OMV Petrom.

‘Transparency is an important and necessary component of the ESG. In order to be relevant in terms of impact, however, transparency must be doubled by the assumption of generally accepted reporting and communication standards by all those involved in the process. Therefore, the existence of standardized valuation tools available equally to all market participants is very important, and BRD welcomes BVB’s initiative to promote responsible investment and the provision of quality ESG information. At the same time, we support initiatives that lead to greater transparency and standardization in the market in terms of ESG ratings, and the Sustainalytics report, one of the global leaders in this segment, is of real benefit to all of us’, said Flavia Popa. Secretary General BRD Groupe Societe Generale.

‘This performance is the result of Antibiotice’s ongoing focus for the implementation of ESG criteria. We believe that this result will generate a plus of trust in the relationship with our shareholders, investors but also in the relationship with the other stakeholders: for suppliers we talk about the trust of having by their side an ethical partner with whom they can collaborate in the long term, for our customers, the trust that Antibiotice products meet the highest quality standards and are developed taking into account the impact we generate on the environment and society as a whole. Today more than ever, ESG reporting has become all the more important because in the near future, access to capital will also be conditioned by the performance we demonstrate in this chapter’, said Liviu Vatavu, Executive Director Corporate Governance, Antibiotice.

‘In the paradigm of decarbonisation and sustainable investment, the importance that companies give to the environment, human resources and corporate governance is equivalent to their role and development in the long run. Nuclearelectrica, through the projects it carries out, is part of the answer in ensuring sustainability. We avoid the annual release of 10 million tons of CO2, 180 million tonnes since the inception of our operations and we aim to reach 24 million tons of CO2 avoided annually after 2031 and to deliver 66% of Romania’s clean energy. Nuclearelectrica belongs to the electric utilities category, so for us, in relation to the production activity, ESG is an essential component. The nuclear industry, by its nature, faces multiple regulations, norms and principles that govern it both at international and national level, already has a long history and expertise in the priority and responsible management of environmental issues, human resources and governance. We welcome BVB’s initiative to conduct the ESG analysis together with Sustainalytics and are proud of the results achieved, a confirmation of our daily commitment and involvement’, said Cosmin Ghita, CEO Nuclearelectrica.

The launch of the first ESG scores on the local capital market takes place in a favorable global context, in which the total assets invested in funds that take into account the ESG criteria in the allocation of investments represent about a third of the total global assets, and investment funds dedicated to ESG strategies have assets of over USD 2,2 trillion. The initiation by the Bucharest Stock Exchange of the first project dedicated to ESG on the Romanian capital market, in 2020, and its continuous development acquires in this global context an even greater relevance, for sustaining the competitiveness of the Romanian market and maintaining the visibility of assets listed at BVB internationally.

Bucharest Stock Exchange launched in September 2020 the first ESG (Environmental, Social, and Governance) project on the local capital market. The BVB’s approach involves promoting responsible investments, developing the Romanian ESG infrastructure, highlighting the importance of ESG standards among all players in the capital market, as well as offering a first assessment to local issuers.

The ESG standards represent of set of norms taken into consideration by investors in their decision making process. ESG standards are made of three components: Environment – the environmental impact and externalities derived from the activity of the company, Social – the relationships with the stakeholders and Governance – encompassing the corporate governance rules and best practices.