ESG Risk Rating
DOUKAS sustainability team carries out studies to identify environmental, social and governance risks of companies. While analyzing sustainability risks and opportunities, 26 metrics set forth by SASB are used. A special question pool was created for
the measurement of these metrics by considering “SASB”, “GRI”, “TCFD” and various “ISO Standards”. A score is assigned to each of the 26 metrics according to the answers given to these questions. At
the end of the reporting, an “ESG Rating Score” is given to companies based on these scores. The rating score is officially recognized by Garanti BBVA and companies can use the rating score to access green financing. The 26 metrics that
DOUKAS sustainability team uses in accordance with national and international standards to identify ESG risks are presented in Table.
Table: Key Metrics Used in ESG Rating
| Environmental Indicators | Social Indicators | Managerial Indicators |
|---|
| Greenhouse Gas Emissions | Human Rights & Community Relations | Product Design & Life Cycle |
| Air Quality | Data Security | Supply Chain Management |
| Physical Impacts & Climate Change | Customer Privacy | Raw Material Finding & Raw Material Efficiency |
| Water & Waste Management | Customer Welfare | Business Model Resilience |
| Waste & Hazardous Material Management | Sales Practices & Product Labeling | Systematic Risk Management |
| Energy Management | Product or Service Accessibility & Economic Suitability | Critical Incident Risk Management |
| Environmental Impacts | Product Quality & Safety | Business Ethics |
| | Labor Practices & Working Conditions | Laws & Regulatory Standards |
| | Occupational Health & Safety | Competitive Behavior |
| | Employee Engagement, Diversity & Inclusion | |
ESG Risk rating provides companies with the opportunity to evaluate their sustainability performance and facilitates access to globally expanding green credits. DOUKAS contributes to the creation of a roadmap for companies to identify their ESG risks and increase their sustainability performance, and contributes to increasing the potential of companies to access green finance through the multi-actor ecosystem based on University-Industry-Finance Sector collaboration. In this context, DOUKAS contributes to the achievement of sustainable development goals at the national level, the separation of the production process from greenhouse gas emissions, and the establishment of competitive green production and consumption processes with its studies on ESG risk rating.