The THSI assessment evaluates companies based on specific criteria within each of the three ESG categories (E, S, and G). Companies are scored across a range of metrics that provide a comprehensive view of their sustainability efforts.

Environmental Criteria

The environmental component of the THSI assessment focuses on how a company manages its environmental impact. This can include:

• Carbon Emissions: Companies are assessed on their efforts to reduce greenhouse gas emissions, the implementation of carbon management strategies, and their overall carbon footprint.
• Energy Efficiency: The framework looks at how effectively a company manages energy use, including the adoption of renewable energy sources and energy-saving technologies.
• Waste Management: Companies are assessed on their waste reduction practices, recycling efforts, and the responsible disposal of hazardous materials.
• Resource Use: The THSI framework evaluates the sustainable use of resources, such as water and raw materials, ensuring that businesses are adopting responsible consumption practices.

Social Criteria

The social component of the THSI assesses a company’s impact on society and its commitment to ethical social practices, including:

• Employee Welfare: Companies are evaluated on how they treat their employees, including fair wages, workplace safety, benefits, and diversity and inclusion policies.
• Community Engagement: Companies are assessed on their involvement in social initiatives, community development projects, and the positive impact they have on local communities.
• Customer Protection: The assessment includes criteria related to product safety, fair marketing, and customer satisfaction. It also evaluates how companies handle complaints and ensure the well-being of consumers.
• Human Rights: The THSI examines how companies address human rights issues, such as child labor, forced labor, and anti-discrimination policies.

Governance Criteria

The governance component focuses on the transparency, integrity, and accountability of a company’s leadership and business practices:

• Board Composition and Leadership: The framework assesses the diversity and effectiveness of the company’s board of directors, as well as the overall corporate governance structure.
• Ethical Standards: Companies are evaluated based on their adherence to ethical standards, anti-corruption practices, and transparency in financial reporting.
• Compliance: The THSI framework evaluates a company’s compliance with relevant local and international regulations, as well as its efforts to manage legal risks.
• Shareholder Rights: The assessment includes how well a company respects shareholder rights, such as voting rights, access to information, and the fair treatment of investors.

How is the THSI Score Calculated?

The THSI score is calculated based on the performance of a company in each of the ESG categories. Each criterion is weighted, and companies are given scores for their performance across various metrics. The final THSI score reflects the company’s overall sustainability performance, with higher scores indicating better sustainability practices.

The assessment is conducted annually, and companies are required to provide updated information on their sustainability practices. This ensures that the assessment remains relevant and reflects any changes or improvements in a company’s ESG performance. shutdown123