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No Apples and Oranges: the Sectorial Approach
Sectorial Approach
Companies are judged in relation to their sectoral or regional
competitors. This approach is not only fair but also enables
us to distinguish pioneers and best-in-class companies. ETHIBEL
is currently working on wider sector analyses in order to
make this comparison even more accurate. Moreover, this approach
makes the whole evaluation system rather dynamic. If, for
instance, some companies in a particular branch of industry
support a good environmental and social policy, the setting
of standards for that sector will be enhanced. ETHIBEL continues
to look out for companies that distinguish themselves in a
positive way from other companies in the same sector.
Dynamic View
In the evaluation, ETHIBEL takes account of the company's
willingness and potential for change. Companies that score
below average in certain areas relating to their sector, may
get a higher evaluation if it appears that they have made
a special effort to improve the negative aspects.
An evaluation by ETHIBEL takes place at a given moment in
time. The decision to include a company in the investment
register is not the end of the story. ETHIBEL continues to
follow the company's progress. A quick update is done every
year and there is an in-depth re-evaluation every three years.
However, ETHIBEL can decide at any time to delete a company
from the register.
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