1

Energy Productivity

In the first step, each company's Energy Productivity is calculated for 2011.  Energy Productivity is defined as Revenue ($US) / Total Energy Use (GJ). It is then percent-ranked against that of all same-industry group peers within the CK coverage universe, and multiplied by 0.75.[2]

In the second step, the change in each company’s Energy Productivity from 2009-2011 is calculated and percent-ranked against that of all same-industry group peers within the CK coverage universe. If the company’s percent-rank is top quartile, the percent-rank is multiplied by 1 and then by 0.25. If the company’s percent-rank is second quartile, the percent-rank is multiplied by 0.75 and then by 0.25. If the company’s percent-rank is third quartile, the percent-rank is multiplied by 0.5 and then by 0.25. If the company’s percent-rank is bottom quartile, the percent-rank is multiplied by 0.25 and then by 0.25.

In the third step, the value from the first and second steps are totaled.

EN 3, EN 4

8.3%

2

Carbon Productivity

In the first step, each company's Carbon Productivity is calculated for 2011.  Carbon Productivity is defined as Revenue ($US) / Total Greenhouse gas (GHG) Emissions (CO2e).  Only Scope 1 and Scope 2 emissions are included according to the GHG Protocol.[3] It is then percent-ranked against that of all same-industry group peers within the CK coverage universe, and multiplied by 0.75.

In the second step, the change in each company’s Carbon Productivity from 2009-2011 is calculated and percent-ranked against that of all same-industry group peers within the CK coverage universe. If the company’s percent-rank is top quartile, the percent-rank is multiplied by 1 and then by 0.25. If the company’s percent-rank is second quartile, the percent-rank is multiplied by 0.75 and then by 0.25. If the company’s percent-rank is third quartile, the percent-rank is multiplied by 0.5 and then by 0.25. If the company’s percent-rank is bottom quartile, the percent-rank is multiplied by 0.25 and then by 0.25.

In the third step, the value from the first and second steps are totaled.

EN 16

8.3%

3

Water Productivity

In the first step, each company's Water Productivity is calculated for 2011.  Water Productivity is defined as Revenue ($US) / Total water (m3). It is then percent-ranked against that of all same-industry group peers within the CK coverage universe, and multiplied by 0.75.

In the second step, the change in each company’s Water Productivity from 2009-2011 is calculated and percent-ranked against that of all same-industry group peers within the CK coverage universe. If the company’s percent-rank is top quartile, the percent-rank is multiplied by 1 and then by 0.25. If the company’s percent-rank is second quartile, the percent-rank is multiplied by 0.75 and then by 0.25. If the company’s percent-rank is third quartile, the percent-rank is multiplied by 0.5 and then by 0.25. If the company’s percent-rank is bottom quartile, the percent-rank is multiplied by 0.25 and then by 0.25.

In the third step, the value from the first and second steps are totaled.

EN 8

8.3%

4

Waste Productivity

In the first step, each company's Waste Productivity is calculated for 2011. Waste Productivity is defined as Revenue ($US) / Total waste generated (metric tonnes). It is then percent-ranked against that of all same-industry group peers within the CK coverage universe, and multiplied by 0.75.

In the second step, the change in each company’s Waste Productivity from 2009-2011 is calculated and percent-ranked against that of all same-industry group peers within the CK coverage universe. If the company’s percent-rank is top quartile, the percent-rank is multiplied by 1 and then by 0.25. If the company’s percent-rank is second quartile, the percent-rank is multiplied by 0.75 and then by 0.25. If the company’s percent-rank is third quartile, the percent-rank is multiplied by 0.5 and then by 0.25. If the company’s percent-rank is bottom quartile, the percent-rank is multiplied by 0.25 and then by 0.25.

In the third step, the value from the first and second steps are totaled.

EN 22

8.3%

5

Innovation Capacity

In the first step, each company's Innovation Capacity score is determined by measuring the ratio of research and development (R&D) expenditures to total revenue averaged over a trailing three-year period (2009-2011).

In the second step, each company's Innovation Capacity score is percent-ranked against that of all same-industry group peers within the CK coverage universe.

EC 1

8.3%

6

Percentage Tax Paid

In the first step, each company's Percentage Tax Paid is calculated as the amount of taxes paid in cash over a trailing five year period (2007-2011) divided by their total EBITDA over the same period. Companies score a 0% in the event that their total EBITDA or taxes paid in cash is zero or lower over the 2007-2011 period.

In the second step, each company's Percentage Tax Paid is percent-ranked against that of all same-industry group peers within the CK coverage universe.

EC 1

8.3%

7

CEO to Average Employee Pay

In the first step, each company's CEO to Average Employee Pay ratio is calculated as total CEO compensation in 2011 divided by average employee compensation in 2011. Average employee compensation is calculated by dividing the company’s total wage bill by the total number of employees.

In the second step, each company's CEO to Average Employee Pay ratio is percent-ranked against that of all same-industry group peers within the CK coverage universe. The lower the ratio, the higher the rank.

EC 1, LA 1

8.3%

8

Pension Fund Status

Due to the unique nature of this indicator, a test is first performed to determine relevance; if a company does not meet the test, it is not scored on this indicator.

The test is as follows: if the total liability of a company's defined benefit pension plan in 2011 divided by the total number of employees in 2011 is greater than $US 50,000, companies are scored on this metric. If this ratio is less than $US 50,000, companies are not scored on this indicator.

For applicable companies, the first step in determining Pension Fund Status is dividing unfunded liabilities at year end 2011 by market capitalization at year end 2011.  In the second step, this amount is percent-ranked against that of all same-industry group peers within the CK coverage universe.

EC 3

8.3%

9

Safety Performance

Each company's Safety Performance is comprised of the Lost Time Injury Score (50% weight) and the Fatality Score (50% weight).

The Lost Time Injury Score is determined by calculating the company's lost time injury rate (defined as the number of lost time incidents per 200,000 employee hours) and percent-ranking it against that of all same-industry group peers within the CK coverage universe.

The Fatality Score is determined by calculating the company’s fatality rate (defined as the number of fatalities divided by the total number of employees) and percent-ranking it against that of all same-industry group peers within the CK coverage universe.

The ‘priority KPI’ test described above will be performed on both lost time incidents and fatalities.  Accordingly, companies in industry groups that do not prevalently disclose fatalities will only be scored on their Lost Time Injury Score.

LA 7

8.3%

10

Employee Turnover

In the first step, each company's Employee Turnover is calculated as (1 - its retention rate). 

In the second step, each company's Employee Turnover is percent-ranked against that of all same industry group peers within the CK coverage universe. The lower the ratio, the higher the rank.

LA 2

8.3%

11

Leadership Diversity

Each company’s Leadership Diversity is comprised of the Board Diversity Score (50% weight) and Leadership Diversity Score (50% weight).

The Board Diversity Score is calculated by determining the proportion of the Board of Directors that is comprised of female directors and percent-ranking it against that of all same-industry group peers within the CK coverage universe.

The Leadership Diversity Score is calculated by determining the proportion of the senior executive team that is comprised of female executives and percent-ranking it against that of all same-industry group peers within the CK coverage universe.

LA 13

8.3%

12

Clean Capitalism Pay Link

The Clean Capitalism Pay Link indicator is designed to reward companies that have set up mechanisms to link the remuneration of senior executives with the achievement of clean capitalism goals or targets.  A score of 100% is given to companies that describe such a mechanism in detail (e.g.  the company specifies the proportion of a particular named executive's compensation that is linked to the achievement of a corporate clean capitalism target, such as reducing emissions, improving energy efficiency, or reducing health & safety accidents ). A score of 50% is given to companies that provide a high level description of such a mechanism (e.g. the company mentions the existence of a link between executive compensation and corporate clean capitalism targets but does not specify the proportion that is linked, the nature of the link, etc.). A score of 0% is given to companies that do not report any linking mechanisms. 

Unlike all other indicators, Clean Capitalism Pay Link does not use any percent-ranking.

4.5

8.3%