DBS-24-02｢Assessing the Assessors;
Value Creation and the S&P Corporate
Sustainability Assessment System｣
Dhiyan Arini, Graduate School of Business (MBA 2023), Doshisha University
Philip Sugai, Professor of Marketing, Graduate School of Business, Doshisha University

June, 2024

Abstract
The Standard & Poor’s (S&P) ESG Ratings system, the Corporate Sustainability Assessment (CSA)
approach is used by investors globally to better understand the sustainability performance of different
firms relative to ESG matters.

In this report, we outline our assessment of the S&P CSA topics andquestions against the Value Model, a model that synthesizes more than 45 of the world’s top ESG andsustainability reporting frameworks into a 7-stakeholder, 27-theme, 81-goal model for value creationand measurement. In this assessment 100 distinct questions from the overall CSA Handbook as wellas one of the 61 industries covered by S&P CSA (the mining industry) were used to understand thebreadth and depth of this model to effectively highlight value creation activities across the 7
stakeholders of the Value Model. While 70% of Value Model themes were covered by the S&P CSA, only
41% of goals were similarly mentioned, and because most CSA questions lacked clear goals ortransparent feedback loops, overall value washing potential was found to be quite high.

Keywords - value, value measurement, ESG, sustainability, S&P CSA, sustainability reportDBS Discussion Paper Series supported by the OMRON Foundation.DBS

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S&P CSA Handbook Methodology against Value
Model
60
4850
40
3020
1021
15
6602301341156S&P Global CSA Value Washing Possibility
30%

26%

25%

23%
20%

20%
15%

17%
13%

10%
5%

1%0%0123

Impact Quality Score

745

S&P Global Sample Questionnaire Value Washing
Possibility
45%

42%

40%
35%
30%
25%

22%
18%

20%
15%
9%

8%

10%
5%

1%
0%
01

23

Impact Quality Score

8459

Goals that arecovered on CSA

Goals that are notcoveredGoals that areCovered onSample Question

E1-A: Full-time
Employment
E1-D: Broad Diversity
and Representativenessof employees

E2-B: Transparent
Reporting on Wages

Goals that are
not covered
E1-A: Full-time
Employment

E1-D: BroadDiversity andRepresentativenessof employees
E2-C: Living
Wage

E2-C: Living
Wage

E2-B:
Transparent
Reporting onWages

E3-A: Physical HealthE3-B: Retirement
Provision

10

E3-C:
Family/Medical
Leave

E3-A: Physical
HealthE3-B:
Retirement
Provision

E3-C: Family/Medical
Leave

E3-D: Employee
Healthcare

E3-D: Employee
Healthcare

E5-B: Work Flexibility

E5-B: Work
Flexibility

E6-B: Human Rights
Corrective Action

E6-B: Human
RightsCorrectiveAction
E6-C: Human
Rights Training

E6-C: Human Rights
Training

Goals that arecovered on CSA

Goals that are notcoveredGoals that are
Covered onSample Question

N1-B: Zero non-GHG
air emissions
N1-C: Zero Plastic
Pollution

11

N1-B: Zero nonGHG air emissions

Goals that arenot covered
N1-C: ZeroPlastic
Pollution
N1-E: ZeroSound andLightdisturbances

N1-E: Zero Sound andLight disturbances
N2-A: Water
infrastructureinteraction strategy

N3: Energy

N3-A: Energy
Consumption
ReportingN2-C: Discharge water
qualityN3-B: Renewable
Energy Use
N3-C: Carbon Neutral
Products

N4-B: Sustainable
Sourcing of Raw
Materials
N4-C: Products with
Positive Societal andEnvironmental Impact
N4-D: Efficient
PackagingN4-E: Efficient
Transportation
N5-B: Humane,
Compassionate
Treatment of All
Animals
N5-C: 100%
Sustainably Sourced
Palm Oil
N6-B: 100% certified
safe & accessiblebuildings
N6-C: 100% of newbuildings are carbon
neutral12

N2-A: Water
infrastructureinteraction
strategy

N2-C:
Discharge water
quality

N3-A: Energy
Consumption
ReportingN3-B:
Renewable
Energy Use
N3-C: Carbon
NeutralProducts

N4-B:
Sustainable
Sourcing ofRaw Materials
N4-C: Productswith Positive
Societal andEnvironmental
Impact
N4-D: EfficientPackaging
N4-E: Efficient
Transportation
N5-B: Humane,Compassionate
Treatment ofAll Animals
N5-C: 100%
Sustainably
Sourced PalmOil
N6-B: 100%
certified safe &accessiblebuildings
N6-C: 100% ofnew buildings
are carbon
neutralS2: Local
Community
Development

Goals that arecovered on CSA

Goals that are notcoveredS1-A: Transparent
tax reporting

S1-B: Appropriate
Taxes Paid
S2-A: Healthy, Safe,
Resilient Community

Goals that areCovered onSample Question
S1-A: Transparent
tax reporting
S2-A: Healthy,Safe, Resilient
Community

S2-B: Benefit-based
capital spending

S3: Local
Employment
andEngagement

S4: Charity andVolunteerism

S2-C: Transparent
Social Reporting
S3-A: Local
Employment
S3-B: Local
Ownership
S3-C: Equitablepurchasing
S3-D: Local Value
ChainsS4-A: Community
volunteering
S4-B: Charitablegiving13

S3-A: Local
Employment

Goals that are
not covered
S1-B:
Appropriate
Taxes Paid
S2-B: Benefitbased capitalspending
S2-C:
Transparent
SocialReportingS3-B: Local
Ownership
S3-C: Equitablepurchasing
S3-D: Local
Value Chains

S4-A: Community
volunteering
S4-B: Charitablegiving

Goals that arecovered on CSA

F3:Management
Capability

Goals that are notcovered

F3-A: Positive EVA(Firm)/EVA (Industry)
ratio

14

Goals that are
Covered on
Sample Question

Goals that arenot covered

F3-A: Positive
EVA(Firm)/EVA(Industry) ratio

Goals that arecovered on CSA
C1: Truth inCommunications

Goals that are notcovered
C1-A: Truth inLabeling
C1-B: Truth inAdvertising

C2-A: Data
Security

P2: Supporting
MSMES andVCSES

Goals that are
Covered on
Sample Question

C2-A: Data
Security

C2-B: Customer
Privacy
C3-A: Customer
Satisfaction

C3-B: Customer Health& Safety

Goals that arecovered on CSA

Goals that are notcovered

P1-A: Report on
Stakeholder
Structure in the
Supply Chain andDistribution
ChannelP1-B: Report on Supply
Chain Diversity, Equity
and Inclusion

P2-A: Supporting
MSMEs, VCSEs,
MWOBEs, and/or

15

Goals that are
not covered
C1-A: Truth inLabeling
C1-B: Truth inAdvertising
C2-B:
CustomerPrivacy
C3-A:
Customer
Satisfaction
C3-B:
Customer
Health &Safety

Goals that areCovered on Sample
QuestionP1-A: Report on
Stakeholder
Structure in the
Supply Chain andDistribution
ChannelGoals that are
not covered
P1-B: Reporton Supply
Chain
Diversity,
Equity andInclusion
P2-A:
Supporting
MSMEs,

SDVOBs throughbusiness partnerships

P2-B: Supporting
MSMEs, VCSEs,
MWOBEs, and/or
SDVOBs througheducation and training

P3-A: Suppliersand Distributor
Impact Reporting

P3-B: Environmental
and Social operating
requirements

P3-A: Suppliers andDistributor Impact
ReportingP3-C: Supply Chain
Carbon Certification
P4-A: Audited
Fair labor
practices
throughout supply
chain anddistribution
channels

P4-B: Living wage paidby all suppliers anddistributors in partner
network

P4-A: Audited Fair
labor practices
throughout supply
chain anddistribution
channels
P4-B: Living wage
paid by all suppliersand distributors inpartner network

16

VCSEs,MWOBEs,and/orSDVOBsthroughbusiness
partnerships
P2-B:
Supporting
MSMEs,
VCSEs,MWOBEs,and/orSDVOBsthrough
education andtraining
P3-B:
Environmental
and Social
operatingrequirements
P3-C: Supply
Chain Carbon
Certification

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Appendix 1-White: Goals not covered by either the CSA or Sample Questionnaire (SQ)
Yellow: Goals covered by CSA but not SQ
Blue: Goals covered by SQ but not by CSA
Green: Goals covered by CSA and SQ