ESG

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We assess GOL’s ESG as “Adequate”, in line with its Environment, Social and Governance scores. Controversies are “Immaterial” and Disclosure is “Adequate”.

• Many of the companies that didn’t meet the listing criteria for the prime market still failed to gain market recognition over an 18-month period and moved to the standard market.
• It is believed that TSE expects more companies to gradually drop out of Prime Market by raising the hurdle for effort targets that aren’t explicitly stated in the listing criteria.
• As quality differences gradually emerge between the Prime and Standard markets, the rift between management awareness and shareholders of Standard market-listed companies is likely to deepen in the future.

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We assess Avianca’s ESG as “Adequate”, in line with its “Adequate” Environmental and Governance scores. However, the company’s Social pillar is “Weak”. Controversies are “Immaterial” and Disclosure is “Adequate”.

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We assess Eletrobras’ ESG as “Strong”, in line with the Environmental pillar, while its Social and Governance scores are “Adequate”. Controversies are “Immaterial” and Disclosure is “Adequate”.

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We assess China Jinmao’s ESG as “Adequate”, in line with the company’s Environmental, Social and Governance scores. Controversies are “Immaterial” and Disclosure is “Strong”.

• In TOB case from a parent company, managers of acquired company finally realized that there’s litigation risk from shareholders if there’s flaw in their fiduciary duty to maximize shareholder interests.
• In the past, acquisitions with negative goodwill were conducted, but a TOB at a price below book value would require plausible rationales. TSE’s request to raise P/B may have affected.
• In addition to the increasing dissolution of parent-subsidiary listings, TOBs (or sales) of equity-method affiliates are expected to increase, as in the case of Daiken Kogyo.

• Cash usage and return targets should be presented to investors along with cost of capital, but few companies can successfully envision future design due to poor planning for growth investments.
• Since there’s a significant positive correlation between ROE+DOE and TOPIX, the company should optimize its cash allocation by demonstrating enhanced shareholder returns until it can design a growth investment plan.
• Ajinomoto, which provided cost of capital projections and ROIC targets by business segment, should be commended for its constant communication with investors seeking better disclosure in good times and bad.

• Given that embedding diversity within company is essential for the company’s growth and resilience, it’ll be up to management leadership to decide whether this should be promoted as management strategy.
• Companies with more women in the workforce tend to have higher stock prices. It can be assumed that the company is hiring talented, skilled, and necessary personnel regardless of gender.
• Analysis shows that companies with a higher percentage of female board members contribute more to value creation. Companies that promote board diversity are also keen on diversity throughout the company.

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We assess Eletrobras’ ESG as “Strong”, in line with the Environmental pillar, while its Social and Governance scores are “Adequate”. Controversies are “Immaterial” and Disclosure is “Adequate”.

• With few women in managerial positions, the reality is that for the time being female directors are forced to appoint candidates from outside the company.
• Two companies is the limit for a monthly board meeting with agenda preliminarily reviewed; investors should oppose proposals to elect candidates who hold board positions at three or more companies.
• The main idea is to promote board diversity for making strategic decisions based on diverse values, but it has become a numbers matching exercise to achieve % of female board members.

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We assess Marfrig’s ESG as “Adequate”, in line with its “Adequate” Environmental, Social and Governance pillars. Controversies are “Immaterial” and Disclosure is “Strong”.

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We assess Embraer’s ESG as “Adequate”, in line with its “Adequate” Environmental and Governance scores. The company has a “Strong” score for the Social pillar. Controversies are “Immaterial” and Disclosure is “Strong”.

• Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
• We assess InRetail RE’s ESG as “Adequate”, in line with its Environmental, Social and Governance scores. Controversies are “Immaterial” and Disclosure is “Adequate”.
• We have based our assessment on parent InRetail Peru Corp’s sustainability reports, which disclose ESG-related information on a consolidated basis, with some details provided for its (bond-issuing) credit pools InRetail RE and InRetail Consumer.

• Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
• We view InRetail Consumer’s ESG as “Adequate”, in line with its Environmental, Social and Governance scores. Controversies are “Immaterial” and Disclosure is “Adequate”.
• Our assessments are based on the sustainability report by parent InRetail Peru Corp, which discloses ESG-related information on a consolidated basis, with some details for its bond-issuing credit pools InRetail Consumer and InRetail RE.

• The Kankeiren intends to prevent further increases in the ratio of independent directors because of the small number of candidates for outside directors.
• One reason why the substance of the Corporate Governance Code has not improved is that independent directors are a minority on the board.
• The company is also responsible for not developing female internal executive director candidates, relying on outside directors for female directors, and not appointing foreign talent to the board.