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AFD Gets Top Ratings for Environmental, Social and Governance Criteria
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The results are in. For the year 2021, AFD was ranked number 1 in its category for environmental, social, and governance (ESG) performance among the 21 banks and agencies rated across Europe. The assessment was conducted by V.E ratings agency, an affiliate of Moody’s ESG Solutions, one of the leading providers of ESG ratings and data.
Since 2015, the V.E agency has conducted environmental, social and governance assessments of AFD. These assessments, which are not commissioned by the target companies and public issuers, make it possible to evaluate and compare their social responsibility performance. Market players are putting increasing value on these assessments as decision-making tools.
Because these assessments are also effective for identifying strengths and weaknesses in ESG issues, they are a valuable tool for assessing and improving corporate social responsibility (CSR) approaches and practices in terms of transparency and information dissemination.
Promoting economic and social development
In 2021, V.E gave AFD Group an “Advanced” score, putting it in the best category. AFD remains in first place among Europe’s “Banks and Special-purpose Agencies” classification and in tenth place worldwide (out of 4,930 companies and banking institutions evaluated), all sectors combined, with an overall score of 73/100. AFD’s score is stable compared to 2019 and 2020 (74/100) and on an upward trend compared to 2017 (70/100) and 2015 (69/100).
AFD Group has improved in the Environment category (+1 point compared to 2020), with a score of 68/100. It is also considered to have a moderate carbon footprint, for which it received an A rating. It scored 79/100 in the Social category and 69/100 on Governance, down one point compared to the previous year.
The assessment identified several strengths, including “Advanced” performance in responsible customer relations, the fight against all forms of discrimination, consideration of human rights issues in its financing, and promotion of economic and social development. AFD Group can improve in such matters as instituting an internal environmental management system, as well as a training program for older employees.
ESG ratings are being taken increasingly seriously by financial institutions and are considered, along with corporate social responsibility, to be " the new litmus test of good banking practices."