ESG

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

• It’s difficult to justify the low ROE based on criteria for judging reasonableness of NSK’s policy-shareholdings: “NSK will reduce policy-shareholdings that aren’t rationale for increasing corporate value over mid-to-long term.
• For NSK with a market capitalization of just under 500 billion yen, 50.1 billion yen in policy stockholdings plus 128.3 billion yen in retirement benefit trust shares is too much.
• Based on past performance trends, the ROE is not expected to rise all at once as profits recover, but the company may continue to raise shareholder returns through share repurchases.

• Largest 500 companies in prime market of 1,800 companies account for 90% of the market capitalization, which shows how low the listing standard of JPY10 billion tradable market capitalization is.
• It’s more important to implement measures that will grow corporate value over the medium-t0-long term than whether or not the market capitalization standard can be achieved by March 2025.
• Since companies that choose standard market at market reclassification include companies that don’t want to resolve corporate governance issues, more companies in standard market won’t be proactive in corporate governance.

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We assess Nexa’s ESG as “Adequate”, in line with its “Adequate” Environmental, Social and Governance scores. 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 Crown Holdings’ ESG as “Adequate”, in line with its Environmental and Social scores, while Governance is “Strong”. 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 Sasol’s ESG as “Adequate”, in line with its “Adequate” Environmental and Social scores. The company has a “Strong” Governance score. The Environmental and Governance pillars carry higher weightages than the Social pillar in our assessment, given the nature of the business and industry. Controversies are “Material”, but Disclosure is “Strong”. The group harbours an ambition to be included in the DJSI.

• Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
• We assess TDC NET’s ESG as “Adequate”, in line with its Social and Governance scores. The company has a “Strong” Environmental score. Controversies are “Immaterial” and Disclosure is “Strong”.
• TDC NET is a Danish mobile and fixed network service provider. It was formed through the split of Denmark’s incumbent telecommunications company into a netco and servco.

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

• The Ministry of Land, Infrastructure and Transport’s investigation revealed that the collapse of GS E&C’s underground parking lot was due to deficiencies in design, construction, and supervision.
• As a response, GS E&C will undergo a comprehensive reconstruction of the entire apartment complex, costing approximately KRW 300 billion, which is equivalent to approximately USD 264 million.
• ESG risks have risen due to consumer relations regarding occupational health and safety and risk oversight, with GS E&C’s company risk rating at a ‘very high’ level of 3.1.

• Even if attendance increases somewhat since 92.1% of AGMs in 2022 had less than 100 attendees, the reluctance to hold an online voting AGM due to technical issues isn’t reasonable.
• With 84.8% of companies having Q&A sessions lasting less than 30 minutes, many companies want to end their Q&A sessions in as short a time as possible.
• Companies that want to keep Q&A sessions short tend to hold hybrid on-site and online sessions that can prioritize questions from on-site attendees and limit questions from online participants.

• Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
• We assess Teva’s ESG as “Adequate”, in line with its “Adequate” Environmental and Social scores. The company has “Strong” Governance. Controversies are “Material”, but Disclosure is “Strong”.
• Teva Pharmaceutical Industries Limited is a global company that develops, produces and markets generic medicines and a focused portfolio of speciality medicines.

• Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
• We assess Stada’s ESG as “Adequate”, in line with its Environmental, Social and Governance scores. Controversies are “Material” and Disclosure is “Adequate”.
• Stada is a leading pharmaceuticals company headquartered in Bad Vilbel, Germany. It manufactures and sells a diverse range of generic and branded products across 125 countries globally.

• The policy of extending retirement age to 65 is a measure to solve the immediate labor shortage, but it may lack the perspective of a mid-to-long-term human resource utilization strategy.
• Since most employees in their 60s are male employees, this may slow down the fading of the traditionally male-centric corporate culture. A more diverse workforce is required.
• Although seniors are still a promising market based on demographic composition, from the perspective of creating new value, it’s necessary to have more discussions about creating society that ensures diversity.

• Nominating Committee’s main activity is the selection of individual director candidates, and the Nominating Committee tends to be less involved in issues related to top management appointments, including succession planning.
• Although most companies have a majority of independent directors as members of the nominating committee, the nominating committee may in fact be a body that approves top management’s proposals.
• Companies focus only on prime market listing criteria of “committee establishment and committee member composition” and overlook original intent. The problem is that it’s all about achieving the formal criteria.

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We view Millicom’s ESG as “Adequate”, with a “Strong” score for Governance, but “Adequate” scores for the Social and Environmental pillars. Controversies are “Immaterial” and Disclosure is “Strong”.

• TSE, which receives listing fees from listed companies, has no choice but to take a negative attitude toward raising listing criteria that would reduce the number of listed companies.
• Behind many companies with stagnant P/Bs is the fact that managers lack stock price consciousness and companies with stock price stagnation for years eliminated and continue to be listing.
• In Japan, it is expected that industry restructuring, dissolution of parent-subsidiary listings, and going private will further increase through M&As, leading to a shakeout in the Japanese market.

• Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
• We view Braskem Idesa’s ESG as “Adequate”, in line with its scores for the Environmental, Social and Governance pillars. Controversies are “Material” and Disclosure is “Strong”.
• Braskem Idesa (Bakide), a single-asset 75%/25% JV between Braskem and Idesa, is Mexico’s largest polyethylene (PE) producer.

• Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
• We view Globo’s ESG as “Weak”, despite its “Adequate” score in quantitative terms. The Social and Governance scores are “Weak”, while the Environmental score is “Adequate”. Controversies are “Immaterial” and Disclosure is “Weak”.
• Globo Comunicacao e Participacoes SA (Globo), privately owned and controlled by the Marinho family, is the largest media group in Brazil. It controls the country’s leading broadcast TV network and its pay-TV programmer, as well as a diversified group of publishing companies and Internet content providers.

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

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We assess BRF’s ESG as “Adequate”, in line with the “Adequate” Environmental and Governance scores. The Social pillar is “Strong”. 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 Orbia’s ESG as “Adequate” bordering on “Strong”, reflecting the company’s “Adequate” Social and Governance scores as well as its “Strong” Environmental score. The Environmental pillar carries the highest weightage in our assessment, due to the nature of the chemicals industry. Controversies are “Immaterial” and Disclosure is “Strong”.