Interpretation of ESG components

Group – 1
Name PRN
Sanjana Singh B 21020841179
Mayuri Majumdar 21020841166
Shantanu Phansalkar 21020841182
Meghna Borbora 21020841168
Shromona Chakraborty 21020841187
Syamantak Chatterjee 21020841191

IND Hotels
Environmental (150-200 words)
Climate change is possibly the most serious challenge confronting humanity, and thus one of the most
essential ESG aspects to consider; this is due to the likely influence of climate change on every part of
our life, as well as the legislative and societal reforms that will be required to battle it.

Social (150-200 words)

Governance (150-200 words)

ESG (150-200 words)

Fig 1. ESG report for IND hotels, Source - Bloomberg

The graphs when analysed show a mixed trend over the past 10 years. The trend lines from 2012 to
2020 shows a gradual dip from FY 2014 and it started showing signs of improvement from FY 2018. This
actually shows that the company is improving on the ESG status which is very vital in today’s scenario.
Businesses today, face significant environmental and social challenges that pose risk to their potential to
sustain growth. Currently the score is 43.8017. Since the score is improving that means IND HOTELS
focusing on the ESG parameter. Every company nowadays, has to take care of the environment and take
care of the needs of the society, as well as should be transparent in its operations. The current scores
indicate satisfactory relative ESG performance and moderate degree of transparency in reporting
material ESG data publicly. In the FY 2020, a slight dip is observed in the ESG score which can be
attributed to the Covid-19 pandemic because the tourism sector got heavily affected due to
international travel restrictions and has not reached its pre-pandemic levels yet.

EIH Limited
Environmental (150-200 words)
There is no data for Environmental factors for EIH Ltd.
Social (150-200 words)
A company's strengths and limitations in dealing with social trends, labour, and politics are among the
social elements to evaluate in sustainable investing. Profits and corporate responsibility can both
benefit from a focus on these issues. The mean value for social disclosure score for EIH is 28.07. The
social factors include Annual Personnel expenses per employee, Community spend % Equity etc., these
factors are those that will occur in a company's relationships with individuals or institutions outside of it.
Sustainable investors will aim to reduce the risk of profits being influenced by societal variables. EIH has
shown a constant rate of 28.07 from FY2017-FY2020. The company should try to improve on their
Societal disclosure score in order to attract investors. As we know EIH Limited is the flagship company of
the Oberoi Group, one of the largest luxury hotel chains in India, having a good investor relation is vital
in the long run.

Governance (150-200 words)

Corporate governance frameworks include the purpose of a company, the role and composition of its
board of directors, shareholder rights, and how the company's performance is monitored. It has other
factors like percentage of non-executive directors on board, percentage of female executives, board
members average age etc. In the midst of analysing about climate risk, societal ramifications, and other
"E" and "S" dangers and possibilities, the "G" aspect is sometimes overlooked when assessing
environmental, social, and governance factors. However, because weak corporate governance
procedures have been at the heart of some of the worst business scandals, understanding governance
risks and opportunities in decision-making is crucial. The mean value for governance disclosure for EIH is
46.23 which is better than other mean disclosure scores, indicating a relatively strong governance
procedure. The mean score of the factors under governance are also quite high. Governance factors
describe the laws and procedures that govern countries and organisations, allowing investors to test for
good governance practises in the same way that they screen for environmental and social issues.

ESG (150-200 words)

Fig 2. ESG report for EIH, Source - Bloomberg

The graphs of EIH when analysed shows a mixed trend over the past 10 years. During the initial 5 years
from FY 2012 to FY 2016, it had a constant score of 10.33 which is quite low indicating poor relative ESG
performance and insufficient degree of transparency in reporting material ESG data publicly. From
FY2017 to FY2020, it took a leap and again a constant rate of 22.31. The score is still low but higher than
previous years indicating that the company wanted to improve the ESG status. As we know that every
company is trying to take care of the environment and the needs of the society as well as trying to be
transparent in their operations, the current rate of ESG of EIH company have to improve on their scores
inorder to compete with its competitors. A relatively poor ESG score hampers both the sustanability and
the value of their portfolio.

Westlife
Environmental (150-200 words)

Social (150-200 words)

Governance (150-200 words)

ESG (150-200 words)

Mahindra
Environmental (150-200 words)

Social (150-200 words)

Governance (150-200 words)

ESG (150-200 words)

Chalet
Lemon Tree Hotels

Coffee Day

Definitions (Added for reference)

ESG Disclosure Score
Excel Field ID: ESG_DISCLOSURE_SCORE
Proprietary Bloomberg score based on the extent of a company's Environmental, Social, and
Governance (ESG) disclosure. Companies that are not covered by ESG group will have no score and will
show N/A. Companies that do not disclose anything will show a value of ‘0’. The score ranges from 0.1
for companies that disclose a minimum amount of ESG data to 100 for those that disclose every data
point collected by Bloomberg. Each data point is weighted in terms of importance, with data such as
Greenhouse Gas Emissions carrying greater weight than other disclosures. A consistent list of topics,
data fields, and field weights apply across sectors and regions. This score measures the amount of ESG
data a company reports publicly, and does not measure the company's performance on any data point.
Environmental Disclosure Score
Excel Field ID: ENVIRON_DISCLOSURE_SCORE

Proprietary Bloomberg score based on the extent of a company's environmental disclosure as part of
Environmental, Social and Governance (ESG) data. Companies that are not covered by ESG group will
have no score and will show N/A. Companies that do not disclose anything will show a value of ‘0’. The
score ranges from 0.1 for companies that disclose a minimum amount of ESG data to 100 for those that
disclose every data point collected by Bloomberg. A consistent list of topics, data fields, and field
weights apply across sectors and regions. This score measures the amount of environmental data a
company reports publicly, and does not measure the company's performance on any data point.
Social Disclosure Score
Excel Field ID: SOCIAL_DISCLOSURE_SCORE

Proprietary Bloomberg score based on the extent of a company's social disclosure as part of
Environmental, Social and Governance (ESG) data. Companies that are not covered by ESG group will
have no score and will show N/A. Companies that do not disclose anything will show a value of ‘0’. The
score ranges from 0.1 for companies that disclose a minimum amount of social data to 100 for those
that disclose every data point collected by Bloomberg. A consistent list of topics, data fields, and field
weights apply across sectors and regions. This score measures the amount of social data a company
reports publicly, and does not measure the company's performance on any data point.
Governance Disclosure Score
Excel Field ID: GOVNCE_DISCLOSURE_SCORE

Proprietary Bloomberg score based on the extent of a company's governance disclosure as part of
Environmental, Social and Governance (ESG) data. Companies that are not covered by ESG group will
have no score and will show N/A. Companies that do not disclose anything will show a value of ‘0’. The
score ranges from 0.1 for companies that disclose a minimum amount of governance data to 100 for
those that disclose every data point collected by Bloomberg. A consistent list of topics, data fields, and
field weights apply across sectors and regions. This score measures the amount of governance data a
company reports publicly, and does not measure the company's performance on any data point.