ESG Risk Rating 2024: Techem returns to the top
*Morningstar Sustainalytics, a global provider of ESG data, research and ratings, rates Techem’s ESG risk at 9.6 and therefore “insignificant”
*Internationally, this places Techem in the top 3 percent of over 16,000 companies.
*Within the “Business Support Services ” subsector , Techem is ranked 6 out of 186 worldwide
ESCHBORN, Germany , Oct. 18, 2024 / — Techem, a leading energy services provider in the real estate sector, has been awarded an ESG risk score of 9.6 by Morningstar Sustainalytics, a global provider of ESG data, research and ratings, giving it the “negligible risk” rating for the second year in a row.
This means that the Eschborn-based energy services provider is once again in the best of five possible categories and remains in the top 3 percent out of more than 16,000 companies from various sectors internationally. In the ” Business Support Services ” subsector, Techem is ranked sixth out of 186 companies and in the “Business Services” sector it is ranked 50th out of 475 companies worldwide.
ESG risk rating as a reliable indicator of the economy
The ESG risk rating is composed of an assessment of ESG risk exposure and related management. With a score of 27.5 in the area of ESG risk exposure (” Low “) and 68.2 in the area of ESG risk management (“Strong”), Techem is ranked first in both cases.
ESG risk management was assessed on the basis of eight different criteria, with Techem achieving the best results in the areas of “emissions, wastewater and waste”, “data protection” and “cybersecurity”.
“As an equal partner, we support our customers in meeting the challenges of the energy transition and contribute to the decarbonisation of the building stock both along our value chain and in regard to our sustainability-related activities.
We have aligned our sustainability programme with clear targets and key figures, thereby ensuring the effective implementation of our sustainability strategy,” explains Techem’s CFO Dr.-Ing. Carsten Sürig.
Strong partners to achieve sustainability goals with TPG and GIC
At the beginning of October, TPG Rise Climate, a fund specialising in climate investments as part of TPG’s global impact investment platform, and GIC, a leading global infrastructure investor, signed an agreement to acquire Techem Group.
TPG Rise Climate, one of the world’s largest private equity funds for global climate solutions, invests in companies such as Techem, which has an increasingly comprehensive decarbonisation offering driven by new digital services and is constantly driving this goal forward.
Together with its new partners TPG and GIC, Techem will now build on this foundation and further expand and advance its position as a leading platform for the digitalisation and decarbonisation of the construction sector in Europe.
Techem will also benefit from TPG and GIC’s expertise in effective decarbonisation to achieve its own ambitious sustainability goals and will thus build on the successful efforts of the previous year.
“Regulatory authorities, banks and investors are increasingly demanding clear sustainability strategies and therefore holding companies more accountable. For Techem, the ESG risk rating is therefore an important indicator of our sustainability performance and a key source of information for capital markets and investors.
With TPG and GIC, we now also have new, strong partners who will help us make significant progress in implementing our sustainability strategies,” Sürig stressed.
ESG at Techem: A holistic approach
In the 2022/2023 financial year, Techem focused even more on the impact of its own devices on the environment and climate in the “E” dimension with an updated “Device Action Plan” and reduced emissions in its own value chain (scope 3) by 18%.
The company is also pursuing specific goals in the “S” dimension and has established clear diversity principles in a Group-wide diversity and anti-discrimination policy.
In addition, Techem carried out the first gender pay equality audit in Germany last year, which shows the percentage pay gap between men and women and established a procedure for determining and reporting it.
In the “G” dimension, the Eschborn-based energy services provider is focusing on continuous risk minimization. In the 2023 financial year, there were no infringements of competition law or significant violations of laws and regulations in the economic or social field within the Techem Group. There were also no significant cases of corruption.
Sustainability as an integral component
In order to be able to contribute as much as possible to all relevant reference groups, sustainability is also considered a cross-cutting topic at Techem and is present in all areas of the company. Katharina Bathe-Metzler has been responsible for Sustainability, Communication and Public Affairs since March 2023 and, in this role, coordinates the company’s sustainability strategy.
The Sustainability department manages the activities related to sustainability and continuously develops them together with the Techem Sustainability Research Institute and the Finance department. Bathe-Metzler reports to CEO Matthias Hartmann , who heads the Sustainability Council and is responsible for sustainability performance.
About the ESG Risk Rating:
The Morningstar Sustainalytics ESG Risk Rating provides clear insights into companies’ ESG risk by assessing the extent of an organization’s unmanaged ESG risk. On a scale from negligible risk (Techem’s rating) to high risk, the rating evaluates the ESG performance of over 16,000 companies worldwide.
Sustainalytics’ rating scale ranges from 0 to 40+*, and Techem received a rating of 9.6 for fiscal year 2023/2024, placing it in the top category. More information can be found at: www.sustainalytics.com .
* Insignificant (0-10), Low (10-20), Medium (20-30), High (30-40) and Severe (40+).
