Converge earns ‘low risk’ ESG rating – analytics firm
Telecommunication firm Converge ICT Solutions Inc. was recently classified as “low risk” in its upgraded Environmental, Social, and Governance (ESG) risk rating assessed by corporate governance analytics company Sustainalytics.
The firm garnered a 19.6 or low risk score this year, pertaining to a “reduced level of unmanaged risks and a lower likelihood of ESG issues adversely affecting the company’s economic value.”
It also earned a “strong” risk management score of 54, indicating the firm’s efficient handling of ESG issues through its programs, policies, and practices.
Converge employs a Board Risk Oversight Committee that manages its ESG strategy development and implementation.
This year’s ESG Risk Analysis ratings are an improvement compared to the 23.4 or medium risk rating in 2022 and the 30.7 or high risk rating in 2021.
Due to the new low risk rating, Sustainalystics said that Converge has ranked 33 out of 235 telecommunication companies worldwide that have been evaluated by Sustainalytics.
To manage physical climate risks, Converge has been making relevant infrastructure investments to strengthen its network. Recently, the company has embarked on end-to-end automation for its network operations through the Network Intelligence and Automation Platform (NIAP).
Converge Chief Strategy Officer and Chief Sustainability Officer Benjamin Azada said the company has strived to strengthen sustainable policies and practices over the past years.
Azada said that Converge has adopted a Board Diversity Policy to ensure inclusivity in gender, ethnicity, nationality, or culture among its Board of Directors, and adheres to the Code of Business Ethics.
Converge also said they utilize 100 percent clean energy for its Pasig and Pampanga data centers. Infrastructure investments were also made to be climate-resilient.
“This upward ESG rating affirms our commitment to long-term value creation by managing potential risks related to our impacts on people, the planet, and prosperity,” said Azada.
Last June, Converge also received an A rating on the ESG metrics of global investment research firm MSCI, which assesses the industry-specific ESG risks and risk management of global public and private companies on a scale of AAA (leader) to CCC (laggard).
The A rating is an improvement to Converge’s past BBB rating.
Converge VP and Head of Enterprise Risk Management Jerome Mario Orfano said the firm “recognizes the importance of proactive risk management in achieving both our company goals and meeting the interests of our stakeholders.”
“As the business expands, we will continue to strengthen our practices to manage imminent and emerging risks within the organization,” said Orfano.