Romania Corporate Sustainability & Transparency INDEX (CST INDEX®), formerly known as Romania CSR INDEX (2016-2020), is the most important and complex ranking in the sustainability field in Romania. The ranking takes into account mainly the companies that have more than 500 employees, more precisely more than 750 companies in Romania, and also smaller companies, that have less than 500 employees, which apply in order to be evaluated according to the scorecard.
Information regarding the methodology:
Romania Corporate Sustainability & Transparency Index (CST INDEX ®) 2024 has 11 sections:
u003cstrongu003eCategory I:u003c/strongu003e u003cstrongu003eSustainability Governanceu003c/strongu003e
1.1. The company publishes a list of Material Matters regarding sustainable development.
1.2. The company describes the process for identifying the Material Matters.
1.3. The materiality analysis conducted is based on the principle of Double Materiality.
1.4. New Indicator 2024: The company describes the processes through which the effectiveness of policies and actions is tracked in relation to material sustainability-related impact, risk, and opportunity.
1.5. New Indicator 2024: The materiality process is verified by a third-party assurance provider.
1.6. The company provides details about its risk management practices and strategies.
1.7. The company publishes a list of identified external and internal stakeholders.
1.8. The company publishes information on how it engaged its stakeholders.
1.9. The company published a Corporate Sustainability /ESG/Social Responsibility Report.
1.10. The content index of the sustainability report was verified by an internationally recognized organization (e.g. GRI).
1.11. Auditing information on corporate sustainability.
u003cstrongu003eCategory II: Diversity Policyu003c/strongu003e
2.1. The company publishes information about the diversity policy
2.2. The company publishes information on the representation of women /men in the board.
2.3. The company publishes information on its policy regarding underrepresented groups such as racial and ethnic minorities, the LGBTQ+ community, or people with disabilities.
u003cstrongu003eCategory III: Economic Impactu003c/strongu003e
3.1. The evaluated company publishes information about the total amount invested in FY 2023 to contribute to the development of the communities.
3.2. The company publishes information on policies applied to ensure gender pay equity and on sustained efforts to address gender pay disparities.
3.3. The company publishes information on the compensation of the Chief Executive Officer.
3.4. The company publishes information on its approach to tax payment.
3.5. The company publishes information about one or more education projects that aimed to develop the skills of members of communities.
3.6. The company presents information about the procurement policy of products manufactured in Romania.
u003cstrongu003eCategory IV: Climate Change u0026amp; Energyu003c/strongu003e
4.1. Management Approach towards Climate Change.
4.2. The company provides details about the Board Level responsibility for Climate Change and Sustainable Development.
4.3. The company publishes information on measures taken to reduce GHGs.
4.4. SCOPE 1 Emissions.
4.5. SCOPE 1 Emissions targets.
4.6. SCOPE 2 Emissions.
4.7. SCOPE 2 Emissions Targets.
4.8. SCOPE 3 Emissions.
4.9. SCOPE 3 Emissions Targets.
4.10. GHGs Intensity Target.
4.11. Emissions Audit / Certification / Verification.
4.12. The company publishes information about the total fuel consumption.
4.13. The company publishes information about the total energy consumption.
4.14 The company publishes information about the Energy intensity ratio for the company.
4.15. Production of Renewable Energy.
4.16. Consumption of Renewable Energy.
u003cstrongu003eCategory V: Environmental Governanceu003c/strongu003e
5.1. The company has developed and published the details of an environmental policy.
5.2. The company has published the details of their environmental risk assessments.
5.3. Non-compliance with Romanian laws and regulations in the environmental area (Fines, Sanctions).
5.4. Taxonomy – Eligible Activities (Turnover, CapEx and OpEx in the context of the EU Taxonomy).
5.5. Taxonomy – Aligned Activities (Turnover, CapEx and OpEx in the context of the EU Taxonomy).
5.6. The company publishes information about the total amount of waste generated and sent to the landfill.
5.7. The company publishes information about the amount of recycled or reused waste – except plastic.
5.8. The company publishes information about the amount of recycled or reused plastic waste.
5.9. The company publishes information about the amount of water used.
5.10. The company publishes information about the protection of biodiversity.
u003cstrongu003eCategory VI: Human Rights and Anti-Corruption Policyu003c/strongu003e
6.1. The company publishes information on its policy for the prevention of human rights abuses.
6.2. New Indicator 2024: Human Rights Due Diligence.
6.3. Non-compliance with Romanian laws and regulations in the socio-economic area.
6.4. The company publishes information about the policy applied to fight corruption and bribery.
6.5. The company publishes information about training activities and internal/external communication to combat corruption and bribery.
6.6. The company mentions details about the management of conflicts of interest within the company.
6.7. Public disclosure on the company’s political commitments, including lobbying activities.
6.8. The company provides details on mechanisms or systems for reporting concerns about unethical behaviours and organizational integrity issues, such as escalation through the management of whistleblowers.
u003cstrongu003eCategory VII: Responsible Employeru003c/strongu003e
7.1. The company publishes information about the management system regarding health and safety at work.
7.2. The company publishes information on professional development programs for employees.
7.3. The company publishes information about the average number of training hours per employee.
7.4. The company publishes information about the work-life balance policies among employees.
7.5. The company publishes information about the freedom of association and collective bargaining.
u003cstrongu003eCategory VIII:u003c/strongu003e u003cstrongu003eProduct u0026amp; Marketing Responsibilityu003c/strongu003e
8.1. The company presents details about at least one initiative that demonstrates that it assumes responsibility for the ethical promotion of products or services.
8.2. The company publishes information about the incidents of non-compliance with the Romanian laws and regulations related to the products and services.
8.3. The company has had campaigns in which social and/or environmental responsibility indicators have been integrated.
8.4. The company publishes information about sustainable/responsible Products and Services.
8.5. The company publishes information about the customer or end-user satisfaction survey.
8.6. The company publishes information about policies to manage material impacts, risks and opportunities related to consumers and end-users.
8.7. The company publishes information about activities that result in positive impacts.
8.8. The company discloses specific channels in place for consumers and end-users to raise concerns or needs.
u003cstrongu003eCategory IX: Investments in Communitiesu003c/strongu003e
9.1. The company publishes information about the dialogue or consultations with the members of their communities.
9.2. Community Investment Programs / Projects in FY 2023 – example no.1.
9.3. Community Investment Programs / Projects in FY 2023 – example no.2.
9.4. Community Investment Programs / Projects in FY 2023 – example no.3.
9.5. The company publishes information about philanthropic and sponsorship initiatives.
9.6. The company can give examples of how it measures the social impact of their Community / CSR Initiatives / Programs & Projects.
9.7. The company publishes information about their employee development programs, for example employee volunteering.
u003cstrongu003eCategory X: Supply Chainu003c/strongu003e
10.1. The company publishes information about the processes of identification and analysis of social risks among New Suppliers.
10.2. The company publishes information about the processes of identification and analysis of environmental risks among New Suppliers.
10.3. The company publishes information about the processes of screening and assessment of social risks among Existing suppliers.
10.4. The company publishes information about the processes of screening and assessment of environmental risks among Existing suppliers.
10.5. Information on the payment practices for suppliers (especially SMEs).
10.6 The company can give at least one example of how it applied social and/or environmental criteria in selecting a new supplier.
u003cstrongu003eCategory XI: Impact and Material Topics – Industry-based DMA (Disclosure on Management Approach)u003c/strongu003e
11.1. Material Matter no. 1. Description of the target, progress and if the target was achieved for the evaluated year.
11.2. Material Matter no. 2. Description of the target, progress and if the target was achieved for the evaluated year.
11.3. Material Matter no. 3. Description of the target, progress and if the target was achieved for the evaluated year.
11.4. Material Matter no. 4. Description of the target, progress and if the target was achieved for the evaluated year.
11.5. Material Matter no. 5. Description of the target, progress and if the target was achieved for the evaluated year.
Notes on Romania Corporate Sustainability & Transparency Index 2024 Methodology:
- For the 2024 Romania CST INDEX, we will take into account the public information reported by companies for FY 2023. The sustainability report can be published up to 2 weeks after the results of Romania CST INDEX are published if our agency has access to the report and all the information needed to evaluate beforehand the company’s performance and level of transparency.
- For each indicator included in the 11 categories (1-11), the maximum score awarded can be 4 points and it is obtained if the company communicated both narrative information (1 point), performance indicators, progress obtained and targets achieved (KPIs) (2, 3 or 4 points).
- Each category has a different weight depending on the industry to which the company belongs. This weight is essential for calculating the final score of each company.
- The score for certain indicators, marked in the evaluation sheet with the mention: “Not Applicable”, is calculated according to the relevance of the respective indicator for the industry of which the company is part.
- Specifically, if at least 10% of the companies in the industry have published information about that specific indicator, these companies receive 1 point or 2/3/4 points, depending on the information provided. Companies that have not published data do not receive points, so they are not scored when calculating the final score. If no company in the respective industry has published data, the indicator is not taken into account for the final score and no company is thus losing points.
- If no evaluated company in a specific industry has published information for 2023 for a specific indicator that is marked compulsory, then the indicator becomes optional and points will not be lost for this indicator.
- The information that will be taken into account for the Romania CST Index, especially information about policies, materiality and stakeholder engagement, will not be older than 3 years.
- Romania CST INDEX is aligned to the most important standards or references at international level used in the sustainability industry. Two of the most important references are Directive 2014/95/EU – also called the Non-Financial Reporting Directive (NFRD) and Corporate Sustainability Reporting Directive (CSRD). Regarding the reporting of sustainability information, the index is aligned with GRI Universal Standards 2021, the most widely used reporting standards worldwide. In addition, there is alignment to the 17 Sustainable Development Goals (SDGs) of the UN, United Nations Global Compact, Dow Jones Sustainability Index methodology, London Benchmarking Group, Social Return on Investment or ISO 26000.
You can find more information about Romania CST Index 2023 in this flash report Report_Romania_CST_Index_2023.
SUSTAINABILITY INDEX MAGAZINE
The bilingual yearbook that brings to the forefront top performers in sustainability according to Romania CST INDEX ranking, as well as the latest trends and innovations in corporate sustainability from local and international experts.
- In 2024 The Azores Sustainability & CSR Services agency launched the second edition of the Sustainability Index Magazine, a Romanian-English bilingual yearbook that aims to present the current status of corporate sustainability in Romania.
- In the magazine, the readers may find the results of the only corporate sustainability index in the country, Romania CST INDEX, company profiles as well as interviews with national and international experts, educational articles, and case studies.
- The publication aims to promote corporate sustainability as a responsible business management practice, as well as to help companies develop a better performing strategy based on aggregated market information.
Thus, Sustainability Index Magazine follows in the footsteps of Community Index Magazine, the bilingual yearbook that contains the results of COMMUNITY INDEX ® the only ranking of programs and projects carried out by companies in Romania to invest in their communities, launched in 2019.
The publication can be useful not only to professionals in the field, but also to local and multinational companies, investors, universities, PR agencies, and authorities.
The magazine has been offered free of charge until now to help raise the level of market know-how. It is offered in print and digital format, as a flipview, and can be viewed here:
Sustainability Index Magazine 2024: https://sustainabilityindex.ro/sustainability-index-magazine-2024-web/
Sustainability Index Magazine 2023: https://sustainabilityindex.ro/sustainability-index-magazine-2023/
For more information about Romania CST INDEX, the methodology and the indicators that are used, please contact us at office@sustainabilityindex.ro.
