London, Oxford 22 November 2017: Environmental Rating Agency (ERA) and Organizational Maturity Services LLP (OMS) to provide world’s first unified ratings that combine corporate governance and environmental performance with long-term business value
This unique collaboration offers investors an additional means of viewing company performance beyond the traditional reliance on corporate self-reporting and credit risk ratings paid for by ratees.
ERA/OMS corporate ratings are designed to avoid these obvious conflicts of interest as they are based on a unified assessment of:
- the corporate values, human systems and purpose of a corporation captured in a single measure of Total Stakeholder Value[I]; with
- independent scientific metrics of environmental performance based on available science and industry best practice.
These values/purpose ratings and scientific/environmental ratings can be used separately but in combination they provide very powerful insights with enhanced predictive capability.
Unified ratings help investors to understand crucial aspects of any business including its culture, investment strategy, quality of leadership and management attitudes to regulatory, reputational and environmental risks.
This new approach produces non-financial data and insights that will augment credit risk ratings provided by traditional rating agencies, that fail to capture the long-term risks associated with the poor utilisation of human capital, climate change, regulatory arbitrage, complex corporate structures, under-investment and the externalisation of environmental risks. It enables investors to ensure they have aligned their investment principles and sustainability priorities within their portfolios.
Stuart Woollard, Managing Partner OMS LLP said:
“Our ratings and measurement of Total Stakeholder Value are already a recognised measure of the criteria that are most likely to deliver sustainable value creation. By integrating ERA’s scientific ratings and analysis alongside our own, we will be able to provide a deeper understanding of how all the critical, organisational factors interact to create value or risk for businesses, the economy and society.”
Dr Matt Prescott, Chief Executive of the ERA said:
“The Environmental Rating Agency is delighted to be developing a unified ratings approach with OMS. Our aim is to combine the best possible understanding of scientific risks and environmental performance of companies, using independent science, with a rigorous assessment of the underlying corporate purpose and values framing the corporate culture and driving decision making within major businesses. Investors need to be confident they are investing in businesses and assets that align with their investment principles and sustainability priorities, currently this information is not available from fully independent and relevant sources, so we are aiming to fill that gap.”
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About OMS LLP OMS provides a unique, evidence based approach to organizational health and the creation of Total Stakeholder Value. Our OM30 diagnostic instrument enables measurement and improvement of Total Stakeholder Value (TSV) created by organizations and provides ratings on OMINDEX: a comparative scale from D to AAA. Our work is multi-disciplinary and uses a whole system perspective, aiming to adopt the same level of evidence-based decision making to be found within the medical profession for human health www.omservices.org
About The Environmental Rating Agency Limited. The ERA provides unique and independent ratings of corporate environmental risk and performance for investors. The ERA rates companies using scientific metrics, benchmarks and insights to help investors to make better informed investment decisions. The ERA sees the current reliance on corporate self-reporting and voluntary disclosures as an endemic failure in the financial system. Find out more about our methodology and case studies at www.environmentalratingagency.com