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Target Rock Advisors
VALUE PROPOSITION
SUSTAINABILITY & SOCIALLY
RESPONSIBLE INVESTING
PRODUCTS & SERVICES
SUSTAINABILITY SCORING
& INDEXING PROCESSES
SUSTAINABLE UTILITY
LEADERS INDEX
FAQ

APPROACH



The components of each of the three pillars of sustainability frequently vary according to the application and practitioner. For example, a regional economic planner might include macroeconomic factors, such as economic ripple effects and regional employment under the “Economic” component of a sustainability analysis. A corporate planner might weight traditional microeconomic factors more heavily, such as profit and loss and sustainability of dividends. One ESG fund might focus exclusively on governance and social issues, while another invests in only environmentally responsible firms.

Target Rock’s system endeavors to be reasonably inclusive of the full range of perspectives.



Our sustainability scoring system considers enterprise behaviors that result in a conveyance of Economic benefit to society in general and the local economy specifically.

These considerations include, for example, reductions in levels of emissions intensity, degrees of success in promoting energy conservation and efficiency among customers, alternative energy supply diversity and jobs created as a result of infrastructure development. When scoring the economic component of a company’s sustainability performance, we also include consideration of regulatory economic and other policies, as well as company financial metrics.

Unlike some rating systems, we include corporate financial metrics since they influence sustainability policy and performance significantly.

Over 81% of energy and utility industry participants in a recent Black & Veatch survey agreed that sustainability policies and practices “…explicitly balance the interests of people, utility financial performance, and the environment.” (61.2%),” or “…assure the financial stability and continuing performance of the utility.” (19.9%)

In another survey recently performed by the UN Global Compact and Accenture, 92% of utility CEO respondents believed that sustainability issues will be critical to the future success of their business and that the “accurate valuation by investors” of sustainability will be important. CEOs also expressed a significant dissonance over what their companies should be doing, versus what they are doing, with regard to incorporating sustainability issues into discussions with financial analysts.



Clearly, sustainability policy is gaining increased attention and promises to drive enterprise behavior and performance in the future.
Financial considerations are critical to any comprehensive and balanced sustainability assessment or investment.