Use of KPIs of ESG 3.0

KPIs for ESG reflect the requirements of economic stakeholders in general and investment professionals in particular. DVFA and EFFAS as professional associations represent investment professionals i.e. individuals who manage or evaluate investments or credit risks as professionals. While it is appreciated that corporate ESG or sustainability disclosure is aimed at a host of stakeholders such as civil societies, NGOs, employees, trade unions, governmental organizations, etc., the authors do not take part for these organizations nor do they claim to express expectations or requirements for any target groups other than investment professionals. DVFA/EFFAS encourages other stakeholder groups to consider and use the KPIs for ESG 3.0 in their respective dialogues with companies, but respect that these groups may require disclosure of other or additional issues. KPIs for ESG 3.0 is a publically available reporting framework, i.e. application for companies is free‐of‐charge.

However, it is required that companies reference the KPIs for ESG 3.0 when disclosing data or using the framework in their sustainability or CSR reports or other vehicles for corporate disclosure. Likewise, the authors encourage investors, financial analysts, credit rating agencies, and other vital functions in capital markets to integrate KPIs for ESG 3.0 into their valuation models and use individual KPIs or ESGs in their dialogue with companies. DVFA and EFFAS will periodically review the accuracy of the framework and implement modifications wherever deemed necessary. In addition, DVFA and EFFAS reserve the right to license the framework or parts thereof to data vendors or providers of database solutions. Finally, DVFA, EFFAS, and National Member Societies reserve the right to provide fee‐based training courses for companies and/or investment professionals. Any third-party training program or event aimed at providing instructions or information on KPIs for ESG is subject to prior authorization through DVFA and/or EFFAS.

Source: DVFA

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