RISKS (5) Poor ESG Rating
■ Tod’s scores poorly in Environmental, Social and Governance based on Thomson Reuters ESG Score*
of C-. We recognise Tod’s and Diego Della Valle’s efforts to promote and contribute to its home country Italy. For example, the contribution of €25M to the Colosseum restoration project, and its promotion and investment in “Made in Italy” products, in the skills, traditions and culture of Italy. However, from an ESG reporting perspective, Tod’s is poor in terms of self-reported ESG performance (i.e., lack of audited annual ESG reporting), and hence the low score.
■ As more investors start to incorporate ESG into their investment selection process, it is important for Tod’s to lift their ESG reporting efforts so not to create an ESG discount to its shares and to exclude institutional investors.
Data Source: Thomson Reuters Eikon as at 7 June 2018