Innovest Strategic Value Advisors

The Index of Corporate Environmental Engagement - A Survey of the FTSE 100 Companies

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Courtesy of Innovest Strategic Value Advisors

METHODOLOGY: Based on the 1994 Extel Survey, BiE and its members determined 10
parameters to be used as indicators of corporate environmental
engagement. The parameters were tested prior to full launch. The index
gauges the extent to which a company is systematic in addressing
environmental challenges, and not its day-to-day performance.

Parameters:

1) corporate environmental policy,
2) main board member with environmental responsibility,
3) formal environmental management system,
4) environmental objectives,
5) measurable targets,
6) internal audit process,
7) employee environmental program,
8) environmental stewardship of products, processes & services,
9) supply chain program,
10) environmental communication with stakeholders.

FTSE 100 companies are ranked in five groupings (quintiles - each
representing 20% of participating companies) according to their survey
Innovest Strategic Value Advisors, Inc. 2
responses. No weightings were applied to the ten parameters, as the pilot
surveys confirmed that they did not have significant effect on the rankings.

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