Globe Telecom said Thursday it achieved a ratings upgrade to ‘AA’ from MSCI, marking the highest rating among companies in the Philippines.
It said it achieved the historic milestone in its commitment to sustainability. “The company’s latest MSCI ESG rating underscores Globe’s dedication to its ESG [environmental, social and governance] strategies and practices, setting a high standard for companies in the Philippines and beyond,” Globe said in a statement.
“This MSCI AA rating is a testament to Globe’s steadfast commitment to sustainability practices, and a historic feat for the Philippines in itself. As we put our sustainability ambitions into action and embed its principles in the way we do business, we are proud to set the benchmark for ESG practices in the industry and the country,” said Globe Group chief sustainability and corporate communications officer Yoly Crisanto.
MSCI ESG Research provides MSCI ESG ratings on global public and a few private companies on a scale of ‘AAA’ (leader) to ‘CCC’ (laggard), according to exposure to industry-specific ESG risks and the ability to manage those risks relative to peers.
These evaluations are based on governance structures, policies, targets, quantitative performance metrics and any relevant controversies.
The firm’s ESG Research aims to provide investors with insights into the ESG risks and opportunities of companies worldwide. With Globe’s upgrade from BBB to A in 2020, and now to AA, it is recognized as an ESG leader, effectively managing its exposures to ESG risks.
Globe’s rating reflects exemplary leadership in climate action. As the first publicly-listed company in the country to commit to set science-based targets through the Science-Based Target initiative, Globe aims to halve greenhouse gas emissions by 2030 and achieve Net Zero emissions by 2050.
Globe surpassed its target in 2022 by reducing 4.42 percent of its carbon emissions, as a result of shifting towards renewable energy, investing in energy-efficient technologies, and deploying green solutions across its network.
It said that in terms of social aspects, the company has been unwavering in its commitment to privacy and data security. The company conducts regular vulnerability assessments, patch management and security threat detection to ensure the protection of its assets.
Globe emphasizes the importance of data privacy and information security training for all its employees. In the area of labor, Globe’s “Alagang Globe” program showcases the company’s dedication to employee well-being. Beyond compliance with the minimum wage law, Globe ensures competitive pay and was recognized multiple times in 2022 for its outstanding workplace practices.
Governance at Globe has also made headway. In the Annual Stockholders Meeting held in April 2023, Globe welcomed four new directors in its board including two female directors with a vision to continue studying and revisiting its diversity and female composition in the board.
Pursuant to its campaign for good corporate governance, the board is now composed of four independent directors and two female member directors.
Globe said it also continues to adopt ESG-linked policies, ensuring that high sustainability and exemplary corporate governance standards are upheld. Globe’s Code of Conduct embeds universal principles on human rights, labor, environment, and anti-corruption into the company’s daily operations.
MSCI ESG Research provides in-depth research, ratings and analysis of the environmental, social and governance-related business practices of thousands of companies worldwide.
The research is designed to provide critical insights that can help institutional investors identify risks and opportunities that traditional investment research may overlook. The MSCI ESG Ratings are also used in the construction of the MSCI ESG Indexes, produced by MSCI Inc.
