The most powerful ESG rating to date

Completeness

The ESG rating and sustainability reporting evaluation takes place with respect to the GIF Framework, a reference model consisting of three interdependent elements:

• Principles
• Criteria
• Metric

The GIF Framework is a non-prescriptive managerial model that allows an organization to lead towards excellence in managing all sustainability matters and risks. The GIF Framework is organized into 5 criteria:

• An enabling criterion (i.e. Governance and Management System)
• 4 criteria relating to specific risks topic (i.e. Social, Health and Safety, Environmental and Business Ethics)

The criteria are organized into topics, areas (core and non-core) and evaluation elements. The GIF Framework is an operational tool that can be used as:

• A common vocabulary for sustainability
• A managerial model to guide the improvement of sustainability approaches and results
• A support for self-assessment
• A way to compare with other organizations
• A guide to identify ESG risks and areas for improvement
• A reference for an independent third-party evaluation

Accuracy

The ESG risks and sustainability reporting conformity assessment is carried out according to a metric oriented towards a score that measures:

• The degree of effectiveness in implementing the governance and management systems according to the Plan, Do, Check, Act (PDCA) logic
• The level of exposure to risks, impacts and opportunities for social, health and safety, environmental and business ethics matters
• The level of compliance of sustainability reporting against the requirements defined in the reference standards used for its preparation

The score evaluation of each area of the GIF Framework considers:

• Historical data and past trends
• Observations on the current situation
• The consistency of future goals
• The consistency of plans and resources allocated for objectives

The assessment is based on the concept of «double materiality» and considers the risks and impacts in the short, medium and long term:

• Caused by the organization’s activities on its stakeholders (e.g. people, environment and local communities)
• Caused by the context on the organization (e.g. physical risk, climate change, etc.)
• That can have an economic impact on the organization because of policies and objectives of changes towards more sustainable development models (e.g. transition risk)

Reliability

The Due Diligence process, compliant with the requirements of the ISO/IEC 17029 standard, is based on a robust audit divided into the following phases:

1. Pre-engagement
2. Engagement
3. Planning
4. Execution
5. Document review + site visit
6. Review
7. Decision

The GIF Due Diligence ensures:

• Minimization of the risks of subjectivity of the evaluation
• Verified information supported by objective evidence
• Superior reliability of the assessment results compared to self-assessments

The Get It Fair Due Diligence process is characterized by:

• Its reference to the GIF Framework
• Transparency of evaluation elements (“Criteria”)
• A standard Evaluation Approach (“Metric”)
• An initial documentation review before the engagement
• An assessment at the organization’s premises and sites
• An assessment conducted by certified auditors (GIF AP Assessors)
• Standardized and evidence-based reporting
• An app enabling the evaluation process
• Balanced thresholds to pass the Due Diligence
• An assessment report review
• Continuous monitoring of Assessors
• An accredited third part body taking the decision
• Periodic assessment of the organization

Comparability

To pass the Due Diligence and get the ESG rating it is necessary to exceed three minimum thresholds (at least 40/100):

1. Minimum score in all core areas
2. Minimum score for the criterion «Governance & Management System»
3. Overall average score

The GIF metric allows an organization to:

• Monitor the progress of the score over time and therefore the actual improvement of approaches and the achieved results
• Compare the score achieved in a given time-period with the score of other organizations that present similar characteristics (benchmarking)

Credibility

The validation bodies accreditation with respect to the ISO/IEC 17029 standard and the Get It Fair program provides interested parties with confidence of:

• Competence
• Integrity
• Impartiality
• Absence of conflicts of interest
• International mutual recognition

The list of Approved Validation Bodies is available at the link: https://getit-fair.com/avb/.

Skills certified

The GIF Due Diligence requires assessors with adequate knowledge, managerial and audit experience to estimate short, medium, and long-term ESG risks. Assessors must be able to confirm the truthfulness of information relating to past events and the plausibility of assumptions about future events. GIF Due Diligence can only be conducted by certified Assessors and Technical Experts in possession of valid credentials.

The GIF AP (Approved Professional) Credentialing system is the certification scheme of personnel accredited with respect to the ISO 17024 standard which certifies the competence of professionals in the field of sustainability, ESG risk assessment and sustainability reporting.

The GIF AP Credentialing System includes 5 professional profiles:

1. Professionals specialized in social responsibility, ESG risks and sustainability reporting with evaluation experience and ability to coordinate the teams carrying out Due Diligence.
2. Professionals specialized in governance and risk assessment, business ethics and compliance with sustainability reporting standards.
3. Professionals specialized in the assessment of social risks (e.g. human rights, labour practices, etc.) and compliance with sustainability reporting standards.
4. Professionals specialized in social responsibility, ESG risks and sustainability reporting with evaluation experience and ability to coordinate the teams carrying out Due Diligence.
5. Professionals (e.g. Managers, Consultants, etc.) with skills certified in defining, implementing, and reporting a management system for sustainability and ESG risks compared to international standards.

To successfully deal with the Due Diligence that leads to the release of the ESG ratings and the GIF Responsible Organization mark, the Get It Fair program recommends companies that take advantage of support for one or more GIF AP Practitioners.

The evaluation for accreditation purposes of the GIF AP Credentialing System people certification scheme and the issuing of certification by an independent third-party body accredited with respect to the ISO 17024 standard ensures:

• The reference to the EQF (European Qualification Framework) for mutual recognition of professions at European level.
• The international recognition of skills certified as equally reliable.

Attestation

An organization that successfully overcomes Due Diligence can obtain:

• GIF Responsible Organization mark. Identifies organizations that have achieved the ESG Rating.
• Final evaluation report. A confidential document containing points of strength and areas of improvement compared to GIF Framework identified in Due Diligence.
• ESG rating report. A summary of ESG rating results available publicly.
• Ethical label. A marketing tool to be placed on the product, its packaging or the technical sheet to distinguish the ethical characteristics of the supplier.
• Sustainability Reporting Assurance. A declaration of conformity of sustainability reporting with reference standards (e.g. ESRS, GRI, etc.)
• Undertakings with the GIF Responsible Organization Mark or sustainability reporting external assurance can be promoted on the web sites of Accredia, Program and Validation Body.

Benefits

1. Internal improvement
   • Creating accountability, building trust, and demonstrating commitment
   • Leading the definition of ESG policies and strategies
   • Improving the management of all ESG matters
   • Leading internal improvement of ESG performance
   • Overcoming regulatory compliance
   • Reducing costs, time, and duplication of external audits
   • Preparing the sustainability reporting external assurance
2.  Improvement towards stakeholders
   • Improving external reputation
   • Increasing consumer confidence
   • Facilitating dialogue with banks and investors
   • Reducing ESG risks along supply chains
   • Improving the opportunity for awarding tenders
   • Facilitating access to public funding
   • Promoting the company brand image
   • Improving relationships with the local community

Governance

The Governance system of the Get It Fair program is characterized by a clear separation of the roles between all the actors of the system (e.g. scheme owner, accreditation body, program operators and accredited bodies), which ensures the absence of conflicts of interest and maximum credibility.