S&P Global Ratings has rated PT GoTo Gojek Tokopedia Tbk’s ESG performance at 44 out of 100, surpassing competitors Grab and Sea. The assessment, based on various evaluation criteria, highlights GoTo’s strengths in waste management and climate strategy. These ESG scores are relevant for investors assessing sustainability in their portfolios, with GoTo classified as a low-risk entity regarding ESG factors.
S&P Global Ratings has assigned a relatively high ESG (Environmental, Social, and Governance) score of 44 out of 100 to PT GoTo Gojek Tokopedia Tbk. This score, announced on October 8, 2024, positions GoTo favorably among leading global companies such as Alphabet Inc. (47/100). In contrast, GoTo’s competitors, Grab Holdings Limited and Sea Limited, achieved lower scores of 28/100 and 21/100, respectively, highlighting GoTo’s superior ESG performance. The S&P Global ESG Score assesses corporate performance and risk management concerning material ESG factors. According to S&P, the assessment incorporates company disclosures, stakeholder and media analysis, and detailed engagement during the S&P Global Corporate Sustainability Assessment (CSA). GoTo participated in the CSA, affecting its score with its self-reported data and public information. S&P Global, along with Moody’s Ratings and Fitch Ratings, evaluates companies based on CSA responses and public data. Companies that do not partake in the CSA, such as Sea Limited, receive evaluations based solely on available public information. Criteria for evaluation encompass sustainability issues, including climate change, governance, and labor practices, aligning with industry relevance and anticipated significance. GoTo excelled in several assessment areas, scoring highest in waste and pollutant management with a 69/95, far exceeding the industry mean of 24/100. Additional strong performances include human capital management (49/100) and climate strategy (89/100). Such ratings inform investors about the ESG leadership of companies and associated risks. Research by Morningstar Sustainalytics ranked GoTo’s ESG risk at the low-risk level (17), while Grab and Sea were positioned in the medium-risk category (scores of 23.9 and 22.9, respectively). These ratings categorize ESG risks into five distinct levels, from negligible to severe, providing a roadmap for investment decisions focused on sustainability.
The article discusses the findings of S&P Global Ratings regarding the ESG scores of Indonesian technology group PT GoTo Gojek Tokopedia Tbk compared to its competitors. It explains the methodology behind the ESG scoring system, which ranks firms based on their environmental, social, and governance practices. These scores help investors evaluate a company’s performance in relation to sustainability, affecting investment strategies and risk assessment.
In conclusion, GoTo’s ESG score of 44/100 indicates a strong commitment to sustainability relative to its peers, notably surpassing Grab and Sea. This rating positions GoTo favorably in the global marketplace, providing insights to investors on the company’s capacity to manage ESG risks and opportunities effectively.
Original Source: www.thejakartapost.com
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