View source for Organization:Standard Ethics Aei

{{short description|Sustainability reporting company in London}}
{{Infobox company
| name = Standard Ethics
| logo = Standard ethics logo.TIF
| logo_size = 270px
| type = 
| foundation = 2004
| founder = 
| location_city = [[Place:London|London]]
| location_country = Belgium, and Italy
| location = 
| key_people = Blanche Ullens de Schooten (Chairman)
| area_served = 
| industry = [[Finance:Credit rating|Rating]]s
| products = Solicited Sustainability Ratings
| services = Sustainability [[Finance:Credit rating|Rating]]
| revenue = 
| operating_income = 
| net_income = 
| num_employees = 
| parent = 
| divisions = 
| subsid = 
| owner = 
| homepage = [http://www.standardethics.eu Standard Ethics]
| dissolved = 
| footnotes = 
}}

'''Standard Ethics''' is an independent sustainability reporting rating agency based in [[Place:London|London]], known for its [[Finance:Sustainable finance|sustainable finance]] and [[Finance:Environmental, social and corporate governance|ESG]] (Environmental, Social, Governance) studies. In 2001, it introduced a standardized approach to [[Earth:Sustainability|sustainability]] ratings. Methodologically, it separates Corporate Social Responsibility ([[Philosophy:Corporate social responsibility|CSR]]) from sustainability, seeing the latter as a global and systemic approach whose definition is not given by a single entity but by international institutions.<ref>{{Cite web | url=https://www.forbes.com/sites/annrutledge/2016/06/06/standard-ethics-the-worlds-first-sustainability-ratings-agency/#2a81a075106f |title = How the World's First Sustainability Ratings Agency Works|website = {{wipe|Forbes}}}}</ref> 

Standard Ethics promotes [[Earth:Sustainability|sustainability]] and [[Finance:Corporate governance|corporate governance]] with the ''Standard Ethics Rating'', an evaluation of how well companies and sovereign nations respond to [[Finance:Corporate governance|corporate governance]] and sustainability, as indicated by guidelines published by the {{wipe|United Nations}}, the Organization for Economic Co-operation and Development, and the [[Social:European Union|European Union]].

The Standard Ethics Business Model is based on the ''applicant-pay model''. Like credit rating agencies, Standard Ethics sells solicited ratings, meaning it charges applicants for ratings. Once assigned, the rating and related analysis belong to the applicant. Conversely, under the investor-pay model, agencies charge investors a fee for a list of companies that warrant investment.<ref>{{Cite web | url=http://www.thenational.scot/business/fresh-blow-for-rbs-as-ethics-agency-gives-them-an-e--rating.17688 | title=Fresh blow for RBS as ethics agency gives them an E- rating}}</ref><ref>{{Cite book | url=https://books.google.com/books?id=gAkoDwAAQBAJ&dq=%22standard+ethics%22+applicant+pay+model&pg=PA164 | title=Organizational Social Irresponsibility: Tools and Theoretical Insights| isbn=9781681237602| last1=Stachowiczstanusch| first1=Agata| last2=Mangia| first2=Gianluigi| last3=Caldarelli| first3=Adele| last4=Amann| first4=Wolfgang| date=April 2017}}</ref>
== Standard Ethics Rating ==
The '''Standard Ethics Rating''' (SER) is a Solicited Sustainability Rating (SSR). It is assigned upon a client's request through a direct and regulated bilateral relationship. It is a rating that intends to deliver an evaluation of the level of compliance by companies and sovereign nations in the field of sustainability and corporate governance as indicated by documents and guidelines published by the United Nations (UN), the Organization for Economic Co-operation and Development (OECD), and the European Union (EU).<ref>{{Cite book | url=https://books.google.com/books?id=0HSADwAAQBAJ&dq=%22standard+Ethics%22+applicant+pay+model&pg=PA37 |title = The Role of Credit Rating Agencies in Responsible Finance|isbn = 9783030037093|last1 = Cash|first1 = Daniel|date = 17 December 2018}}</ref> 

Standard Ethics does not use weights and KPI-based analyses or indicators but uses a method based on its own proprietary six-group variable algorithm.

Standard Ethics links the rating to an evaluation done both at a qualitative and quantitative level of the potential [[Social:Reputational damage|reputational risks]] for a company. This process aims to protect corporate assets, particularly corporate reputation. Companies believe that EU, OECD and UN recommendations suggest future legislative requirements. Therefore, complying with this model could bring a competitive advantage.{{Citation needed|date=August 2021|reason=what companies?}}  

The methodological approach of Standard Ethics was first introduced in 2001, and its ratings are based on a scale comprising nine letter grades:<ref>As explained in a scientific publication of 2002: Jacopo Schettini Gherardini, "Introduzione" in "Etica, futuro e finanza", Schettini G. J. e Schettini G. L. (a cura di), Il Sole 24Ore, marzo 2002, Milano, Pag.9</ref> EEE; EEE−; EE+; EE; EE−; E+; E; E−; F; where "EEE" stands for ‘above average’; "EE" for ‘average’; and "E" for ‘below average’.

== Standard Ethics indices ==
Standard Ethics covers the major OECD Stock Exchange markets and the largest listed companies in those markets. In April 2019, Standard Ethics announced its '''SE European 100 Index''', whose Index constituents have been selected according to their dimension, in terms of market capitalization.<ref>{{Cite web | url=https://finanza-mercati.ilsole24ore.com/azioni/pagine/dettaglioazioninotiziepull/dettaglioazioninotiziepull.php?QUOTE=!DE0001135408.MOT&PNAC=nRC_02.04.2019_09.13_141 |title = Borsa: Quotazioni, azioni e titoli - Il Sole 24 Ore Mercati}}</ref> 

To date (April 2019), Standard Ethics has created the following Indices: 
* SE '''European 100''' Index (composed of the 100 largest European listed companies based on market capitalization, with a Standard Ethics Rating).
* SE '''Italian''' Index (40 companies within the FTSE-MIB index of the Italian Stock Exchange that have been assigned a Standard Ethics Rating). 
* SE '''Italian Banks''' Index (composed of all Italian banks listed on the Italian Stock Exchange with a Standard Ethics Rating).
* SE '''UK''' Index (composed of the 40 largest British-listed companies with a Standard Ethics Rating).
* SE '''French''' Index (composed of the 40 largest French-listed companies with a Standard Ethics Rating).
* SE '''German''' Index (composed of the 30 largest German-listed companies with a Standard Ethics Rating).
* SE '''Belgian''' Index (composed of the 20 largest Belgium-listed companies with a Standard Ethics Rating).
* SE '''Spanish''' Index (composed of the 30 largest Spanish-listed companies with a Standard Ethics Rating).
* SE '''Dutch''' Index (composed of the 30 largest Dutch-listed companies with a Standard Ethics Rating).
* SE '''Swiss''' Index (composed of the 30 largest Swiss-listed companies with a Standard Ethics Rating).
* SE '''European Banks''' Index (composed of the 40 largest European-listed banks with a Standard Ethics Rating).
* SE '''Best in Class European''' Index (composed of the 30 European-list companies with the highest Standard Ethics Rating).
* SE '''US''' Index (composed of the 20 largest US-listed companies with a Standard Ethics Rating).

The way Standard Ethics reports on its indices is based on full disclosure.

===National Ratings===
This is the situation for sovereign nations with a Standard Ethics Sustainability Rating as of April 2019. In 2013, Standard Ethics was the first to assign the rating to the Vatican City State.<ref>{{Cite web | url=http://www.archivioradiovaticana.va/storico/2013/10/29/vatican_city_state_receives_elevated_standard_ethics_rating_/in2-741634 | title=Vatican City State receives elevated Standard Ethics Rating}}</ref>
<!-- key for sorting, E-=16; E=17; E+=18; EE-=19; EE=20; EE+=21; EEE-=22; EEE=23 -->

{| class="sortable wikitable"
|- bgcolor="#ececec" valign=top
! Country !! Rating !! Outlook !! Date
|-
| {{ARG}} || <span style="display:none;">17</span>E ||  || October 2015
|-
| {{AUS}} || <span style="display:none;">21</span>EE+ ||  || October 2015
|-
| {{AUT}} || <span style="display:none;">22</span>EE− || || March 2020
|-
| {{BEL}} || <span style="display:none;">19</span>EEE− || || October 2015
|-
| {{BRA}} || <span style="display:none;">19</span>EE− || || April 2014
|-
| {{BUL}} || <span style="display:none;">19</span>EE− || || April 2014
|-
| {{CAN}} || <span style="display:none;">21</span>EEE− || || March 2018
|-
| {{CHL}} || <span style="display:none;">18</span>E+ ||  || April 2014
|-
| {{CHN}} || <span style="display:none;">16</span>E− || || Nov 2018
|-
| {{CZE}} || <span style="display:none;">20</span>EE− || || October 2016
|-
| {{flag|Denmark}} || <span style="display:none;">23</span>EEE ||  || June 2016
|-
| {{EGY}} || <span style="display:none;">16</span>E− || || April 2014
|-
| {{EST}} || <span style="display:none;">19</span>EE− || || April 2014
|-
| {{FIN}} || <span style="display:none;">23</span>EEE− || || October 2015
|-
| {{FRA}} || <span style="display:none;">22</span>EEE− || || April 2014
|-
| {{GER}} || <span style="display:none;">21</span>EE+ ||  || April 2014
|-
| {{GBR}} || <span style="display:none;">22</span>EEE− || || March 2017
|-
| {{GRE}} || <span style="display:none;">20</span>EE ||  || January 2015
|-
| {{HUN}} || <span style="display:none;">18</span>E || Negative || March 2020
|-
| {{ISL}} || <span style="display:none;">23</span>EEE ||  || April 2014
|-
| {{IND}} || <span style="display:none;">17</span>E || Under monitoring || April 2014
|-
| {{IRL}} || <span style="display:none;">22</span>EEE− || || April 2014
|-
| {{ISR}} || <span style="display:none;">18</span>E+ ||  || April 2014
|-
| {{ITA}} || <span style="display:none;">21</span>EE+ || || March 2020
|-
| {{JAP}} || <span style="display:none;">20</span>EE ||  || April 2014
|-
| {{LUX}} || <span style="display:none;">21</span>EE+ ||  || October 2015
|-
| {{MEX}} || <span style="display:none;">19</span>EE− || || April 2014
|-
| {{NED}} || <span style="display:none;">22</span>EE+ ||  || March 2020
|-
| {{flag|New Zealand}} || <span style="display:none;">22</span>EEE− || || February 2018
|-
| {{flag|Norway}} || <span style="display:none;">23</span>EEE ||  || October 2015
|-
| {{POL}} || <span style="display:none;">19</span>E ||  || March 2020
|-
| {{POR}} || <span style="display:none;">20</span>EE ||  || April 2014
|-
| {{ROM}} || <span style="display:none;">19</span>EE− || || April 2014
|-
| {{RUS}} || <span style="display:none;">17</span>F || Under monitoring || February 2022<ref>{{cite news |title=Standard Ethics cuts Russia sustainability rating to lowest rung |newspaper=Reuters |date=24 February 2022 |url=https://www.reuters.com/business/sustainable-business/standard-ethics-cuts-russia-sustainability-rating-lowest-rung-2022-02-24/}}</ref>
|-
| {{SLO}} || <span style="display:none;">21</span>EE+ || || October 2015
|-
| {{flag|Slovakia}} || <span style="display:none;">20</span>EE || Negative || February 2016
|-
| {{flag|South Africa}} || <span style="display:none;">19</span>EE− || || October 2015
|-
| {{KOR}} || <span style="display:none;">18</span>E+ || Positive || July 2016
|-
| {{flag|Spain}} || <span style="display:none;">22</span>EE+ ||  ||October 2017
|-
| {{flag|Sweden}} || <span style="display:none;">23</span>EEE− || || May 2020
|-
| {{flag|Switzerland}} || <span style="display:none;">21</span>EE+ ||  || March 2020
|-
| {{flag|Turkey}} || <span style="display:none;">18</span>E− || Negative || September 2017
|-
| {{flag|USA}} || <span style="display:none;">22</span>EE || Negative  || Jun 2018
|-
| {{flag|Vatican City}} || <span style="display:none;">20</span>EE ||  || April 2014
|}

== References ==
{{Reflist}}

== External links ==
* [http://standardethics.eu// Official Website]

[[Category: Social responsibility organizations]]

{{Sourceattribution|Standard Ethics Aei}}