Fluidra continues to enhance its ESG performance as corroborated by the Sustainalytics ratingOctober 14, 2021
The company has upped its rating in this leading ESG classification system.
This is further proof of the strategic focus Fluidra has placed on the issue of ESG and that can be added to other positive results in the CDP and S&P ratings, and its listing on the FTSE4Good Index Series.
Fluidra, the global leader in the pool and wellness equipment business and in connected solutions, has improved its Sustainalytics ESG Risk Rating by more than 7 points to attain result of 24.6 and a risk rating of MEDIUM. This rating measures the company’s exposure to ESG risks, namely, Environmental, Social, and Governance matters, specific to the industry and assesses its management.
The Sustainalytics report backs up the fact that Fluidra is in the top 8% of international companies in the industrial machinery sector that form part of its ranking. Fluidra has obtained a LEADERSHIP position in the category of Audit & Financial Reporting and showed a STRONG performance in its management of carbon emissions and human rights standards in its supply chain.
In addition, the company also improved its ESG Risk Management rating, which assesses the robustness of ESG programs, practices and policies, to obtain a rating of STRONG (51.9). The assessment system considers that Fluidra’s performance in terms of ESG standards is in line with best practices, which is a measure of its firm commitment to its workforce, investors and customers. The company’s ESG strategy is directly supervised by the executive team and forms part of the global business strategy.
Sustainalytics, a subsidiary of Morningstar, publishes its ratings based on the performance of the sustainability practices of more than 14,000 companies around the world. Its report takes 450 aspects into account that serve to assess 70 variables.
Firm commitment by the company to ESG
Fluidra presented its full ESG plan, the Responsibility Blueprint, at its last Capital Markets Day for the 2020–2026 period. With regard to environmental issues, Fluidra has committed to becoming a carbon neutral company in terms of Scope 1 and 2 by 2027 and of Scope 3 before 2050. Fluidra has also committed to building up the sales of its products currently classified as ESG friendly from 50% to 80% by 2035.
Insofar as social matters are concerned, Fluidra is focusing on gender equality, with a commitment to eliminate the wage gap by 2024. Lastly, governance is also a core part of the company’s road map, for which an analysis is being made of ESG risks that will be in line with the best practices set by the Task Force on Climate-related Financial Disclosures (TCFD), which provides guidance designed to improve investors’ understanding of the impact of climate risks on different corporations.
Fluidra obtained an ESG score of 69 out of 1000 in the S&P rating and has committed to reach a score of 80 before 2030. This rating awarded by Sustainalytics can be added to the CDP rating and its listing on the FTSE4Good Index Series in acknowledgement of the company’s work on ESG issues.