Sustainability is one of those intangibles that is difficult to measure and quantify. The recent ratification of Cellnex Telecom as a member of theFTSE4Good sustainability index, for the fourth year in a row, is therefore a great satisfaction for the company.
Conducted by FTSE Russell, this evaluation was awarded as part of the annual reviews to assess the performance of companies and their continuity in this selective international index.
The prestigious FTSE4Good recognises the best practices of listed companies against Environmental, Social and Governance (ESG) criteria. Cellnex was selected to join this index in January 2017 and since then has figured among the international companies standing out for their commitment to society and the environment, integrating its CSR strategy across all activities and decisions.
Cellnex passes with flying colours
In the review performed in the first half of 2020, FTSE4Good awarded Cellnex an overall score of 4.2 out of 5 – compared to 4.4 out of 5 in 2019 – outstripping the average for the telecommunications sector, which was 2.8 out of 5. Likewise, the company’s score is also higher than that of mobile operators and other organisations in the sector, as well as that of the Spanish companies present in the selective index, which scored an average of 3.2 out of 5.
For the second year in a row, Cellnex was assessed positively for aspects related to governance, obtaining the maximum score (5 out of 5) in factors related to corporate governance and for anti-corruption measures.
This year, another fundamental pillar was the company’s social dimension, with a score that rose two tenths on the previous year to 4.2, focusing particularly on labour standards, which attained the top score (5 out of 5 compared to 4 out of 5 last year), and values related to human rights and the community, as well as social aspects throughout its entire value chain, both of which were awarded a 4.
For environmental management, FTSE Russell once again rewarded the company’s efforts to tackle climate change with the highest score (5 out of 5), leaving room for improvement in environmental management throughout its supply chain (3 out of 5).
About the FTSE4Good
There are several indexes and certificates measuring the social commitment of companies but the FTSE4Good series are among the most prestigious and respected internationally. Its indexes measure the degree of compliance of companies proving a high level of competence in their environmental, social and governance practices. They therefore offer a global and comprehensive diagnosis of the companies’ social and CSR commitment, covering actions in favour of the environment and human rights, and others aimed at society and its target audiences.
These indexes are used by many financial market players in the process of creating and evaluating what are known as socially responsible investment funds and other products. These include ESG ratings, used by investors seeking to incorporate environmental, social and corporate governance factors into their investment selection processes. They are also used as a benchmark for assessing business commitment and for rating corporate governance.