Edenred Assigned ESG Evaluation Of 79; Preparedness Strong

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Mar 17, 2022, 13:12 ET

LONDON, March 17, 2022 /PRNewswire/ -- S&P Global Ratings said today that it has assigned Edenred an ESG Evaluation of 79. The company's ESG Evaluation is the result of an ESG profile of 74 combined with strong (+5) preparedness. Higher numbers indicate stronger sustainability in our evaluations.

The report is available at this link.

Our ESG Evaluation of 79 reflects Edenred's unique role in improving working conditions for its clients' employees and facilitating governments' policies to communities through its focus on benefits and wellbeing.

The evaluation further reflects the company's actions to mitigate its already-limited exposure to environmental risk, particularly with regard to waste. Also, we expect Edenred to strengthen its management of indirect greenhouse gases. Finally, although the company has exposure to governance risk from operations in countries with relatively lower governance standards, predominantly Brazil, its governance standards are generally in line with those of France.

Edenred's effective strategic planning and decision-making processes anchor its strong preparedness to address long-term risks and opportunities in its industry, and deploy its ambition to become "the everyday companion for people at work." In tandem, the company's strong culture contributes to effective execution of its strategy. For instance, it did not halt capital expenditure throughout the pandemic, with this supporting its long-term business.

Edenred is a services company headquartered in France that provides transactional solutions to organizations, their employees, and partner merchants. The company's solutions fall into three business segments: employee benefits (61% of revenue in 2021), fleet and mobility solutions (26%), and complementary solutions (13%), which includes its Corporate Payments solutions (such as business-to-business payments). Services are concentrated in Europe (64% of revenue in 2021) and Latin America (28%).

What Is An ESG Evaluation?

S&P Global Ratings' ESG evaluation is a cross-sector, relative analysis of an entity's capacity to continue to operate successfully. It is grounded in how ESG factors could affect stakeholders, potentially leading to a material direct or indirect financial impact on the entity.

Our definition of stakeholders for a particular entity goes beyond shareholders to include employees, the local community, government, regulators, customers, lenders, borrowers, policyholders, voters, members, and suppliers. A high ESG evaluation indicates an entity is relatively less prone to experiencing material ESG-related events, and is relatively better positioned to capitalize on ESG-related growth opportunities than entities with lower ESG evaluations.

First, we establish an ESG profile for a given entity, which assesses the exposure of the entity's operations to observable ESG risks and opportunities, and how the entity is mitigating these risks and capitalizing on these opportunities.

Second, we assess the entity's long-term preparedness, namely its capacity to anticipate and adapt to a variety of long-term plausible disruptions.

S&P Global Ratings currently evaluates more than 85 entities across the globe; they have an average score of 68. Since the first ESG evaluation, published in June 2019, we have finalized ESG Evaluations across 21 sectors globally. By region, the highest average score is 73, for companies headquartered in Europe, the Middle East, and Africa.

Visit spglobal.com/ratings for our latest sustainable finance research and all of our publicly available ESG Evaluations.

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