The story

Companies that score well on environmental social and governance (ESG) ratings are known to better anticipate future risks and opportunities, be more disposed to longer-term strategic thinking, and able to deliver long-term value. Investors often use ESG ratings as part of a broader analysis, or to positively screen for ‘best-in-class’ companies and negatively screen out worst-performing companies. If a company appears low down its industry list, it could result in exclusion from ESG investment products.

Working closely with the sustainability team at easyJet, we engaged with two widely used ESG rating providers – MSCI and Sustainalytics – to identify opportunities to improve its scoring and approach to managing material issues. We began by evaluating the airlines existing performance in each rating, as well as the criteria for scoring each of ‘E’ ‘S’ and ‘G’. We analysed the results and mapped them against the company’s existing ESG strategy and disclosures.

Our analysis identified opportunities across important areas of easyJet’s performance and provided easyJet with a practical action plan to improve its scoring and approach year-on-year.