Daily Brief ESG: If Multi-Stakeholder Is Equally Important and more

• It is desirable for stakeholders other than shareholders for the company to be profitable. The problem lies in holding excess cash without making sufficient returns from the business.
• Cash flow should be used for reinvestment and shareholder returns, but in fact many companies didn’t grow their allocations to investment and shareholder returns, but instead accumulated cash on hand.
• There is a big difference in corporate value between a company with growing cash flow and increasing shareholder returns and a company with stagnant cash flow but raising shareholder returns.

• Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
• We assess TalkTalk’s ESG as “Adequate”, in line with its Environmental and Governance scores, while the Social score is “Weak”. Controversies are “Immaterial” and Disclosure is “Weak”.
• TalkTalk is the UK’s leading non-traditional telecom service provider. It offers fixed-line telecom and pay-TV services (3.8 k on-net subscribers as of August 2023), as well as wholesale telecom services.

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
CBR Fashion’s ESG is “Adequate” in our view, in line with its Governance score. The company has “Weak” scores for the Environmental and Social pillars. Controversies are “Immaterial”, but Disclosure is “Weak”.

• Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
• We assess Renk’s ESG as “Adequate”, driven by the “Adequate” scores for the Environmental, Social and Governance pillars. Controversies are “Immaterial” and Disclosure is “Adequate”.
• Renk AG is a global manufacturer of high-quality automatic transmissions, gear units, slide bearings, suspension systems, couplings and test systems.