GENEVA, Switzerland – April 27, 2023 – Temenos (SIX: TEMN) has been recognized as an industry-leading ESG performer by Sustainalytics for its exceptional work in reducing and managing ESG risks, achieving badges in both “ESG Industry Top Rated” and “ESG Regional Top Rated”.
Temenos is classified as “Low Risk” with a score of 11.9, placing it firmly in the lower end of the rating band which focuses on material ESG issues, such as Human Capital, Data Privacy and Security and Business Ethics. Temenos placed first against its market peers, and in the top 2% across both the “Software & Services” industry as well as the “Enterprise and Infrastructure Software” sub-industry.
According to the rating, Temenos’ ESG reporting as well as the company’s overall management of material ESG issues are considered strong, as the company has board level oversight for ESG issues.
Morningstar Sustainalytics is the leading organization for reviewing the sustainability of listed companies based on their environmental, social and corporate governance performance. Its 2023 Top-Rated ESG Companies List, which covers more than 14,000 companies across 42 industries, evaluates a company’s exposure to industry-specific ESG risks and how well it is managing relevant ESG issues– a measure increasingly vital across multiple industries including the banking sector. The Sustainalytics rating distinguishes between five levels of risk: negligible, low, medium, high and severe.
Kalliopi Chioti, Chief Marketing & ESG Officer at Temenos, said:
“We see that ESG opportunities and risks are becoming more and more relevant for financial institutions. Our banking clients understand the implications of ESG risks, from both a stakeholder and regulatory perspective, and take action to address them. They are looking for partners who have embedded ESG throughout their operations as well as strong management of material ESG issues. This recognition is an important milestone, showcasing Temenos’ resilience and robust management against exposure to ESG risks, enabling the company to navigate the rapidly evolving regulatory landscape, build trust with stakeholders, and create sustainable value for its clients in the banking sector.”
Temenos is recognized as a Gold class leader in the software industry in S&P Global Sustainable Yearbook 2023. The company was also awarded a triple-A rating in the Morgan Stanley Capital Investment’s (MSCI) ESG rating, the highest possible score, while also achieving top scores in the Carbon Disclosure Project (CDP) for the second year running.
Temenos’ commitment to reducing carbon emissions has been validated by the Science Based Targets Initiative, with the assessment recognizing the company’s best practice in reducing Scope 1, 2 and 3 emissions.
Temenos has also embedded ESG in its product offering to support customers manage their own sustainability. In 2022, it launched the Temenos carbon emissions calculator to give customers deeper insight into carbon emissions data associated with their consumption of Temenos Banking Cloud services. It also announced a new ESG Investing service, helping banks and wealth managers meet the growing demand for sustainable investing.
An overview of Temenos’ environmental roadmap towards a net zero economy and more information about the company’s ESG achievements are available here.