FARSIGHT RATES MATURITY OF LEADERSHIP
The FarSight model of security analysis offers the investor a rating of the maturity of a company’s leadership based on how the leadership communicates its response to material issues in its annual reporting and other publicly available media sources
The foolhardy leader exploits material issues for short-term gain, but leaves the company with a growing risk of reputational and financial collapse in the long term
Mature leaders reveal strength and integrity to do the right thing –
build and defend long-term value across all capitals (resource- and relational)
ESG Investing
FarSight is a research house for ESG investors. The FarSight model differs from traditional ESG research by making a strong link between GELSCE issues* and the business case.
By applying proprietary FarSight model analysis to weighted material issues, we can test leadership’s ability to:
- engage constructively
- act boldly
- measure honestly
- build long-term value for shareholders
* GELSCE issues are our 24 issues categorised under: Governance, Ethics, Labour, Society, Customers and the Environment
Material Issues
When companies exploit resources and relationships for financial gain, material issues arise.
Our research weights these issues for their impact on the business’ ability to create value for its shareholders. Examples of issues ordered for materiality for sample sectors:
- Banking – Governance, Ethics, Customers, Society, Labour, Environment
- Mining – Labour, Society, Environment, Ethics, Governance, Customers
- Healthcare – Customers, Ethics, Governance, Society, Labour, Environment
Knowledge
- Post articles on trending ESG issues
- Develop tutorials on the relevance of ESG to sustainable business and long-term financial outperformance
- Provide guidance to leadership on how to report the company’s value creation story to present a true picture of intrinsic value