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University of Melbourne ESG Ratings Question

 

I’m working on a business question and need an explanation and answer to help me learn.

On this basis, he concludes that PA is a better performer and has lower risk because the sum of the scores is 8 (versus 7 for SBS).He takes his work to his boss, Loretta Liu, who tells Sam that his analysis would be improved if he considered the materiality of each issue for companies in that sector/industry as defined by SASB’s Materiality Map. A) Why is materiality important? Which issues are considered material by SASB for each company? B) Based on your answer to (A), and only using the information provided above and SASB’s Materiality Map, calculate ESG scores that incorporate materiality. Which company is the preferred investment on this basis? Briefly explain your answer.