Far East Horizon: Limited Environmental Improvements Weigh on ESG Performance

4.71
35 ratings

Far East Horizon Limited is principally engaged in the provision of financial services through its Financial and Advisory Business, which offers direct finance leasing, sale-leaseback, factoring, entrusted loans, and other advisory services. The company also operates through its Industrial Operation segment, which is involved in the trade of medical equipment, along with trade agency and ship brokerage services. An analysis of the company's environmental, social, and governance policies are as follows:


Environment


From an environmental perspective, the company scores relatively unfavorably, outperforming on the Emissions Score front, but underperforming on the Resource Use Score front.


For instance, it has implemented a resource reduction policy, which compares to the presence of a clear policy in the prior year. The company has implemented a water efficiency policy, with an energy efficiency policy implemented as well. This compares to the presence of a similar policy in the prior year.


Environmental policy areas the company is currently lacking include Environmental Supply Chain Policy, Resource Reduction Targets, Water Efficiency Targets, Energy Efficiency Targets, Environmental Materials Sourcing, and Toxic Chemicals Reduction. Areas the company has addressed include the setup of an Environment Management Team and Environment Management Training.


The company has also implemented renewable energy use, which compares to the lack of a clear policy in the prior year. The company has also notably implemented green buildings as well, which compares to the presence of a defined policy in this regard in the prior year.


In terms of its carbon footprint, the company's Estimated CO2 Equivalents Emission Total stands at 44,257 in the latest fiscal year, which compares to 20,810 in the prior year and 18,835 in the year before based on a Reported CO2 Estimates.


Social


From a social standpoint, the company scores favorably, particularly outperforming on the Workforce Score front, but underperforming on the Human Rights Score front.


For instance, it has implemented a health and safety policy, which compares to the presence of a clear policy in the prior year. The company has also implemented an Employee Health & Safety Policy, with a Supply Chain Health & Safety Policy not implemented as well. This compares to the lack of a similar policy in the prior year.


The company has produced a rise in Net Employment Creation. The Number of Employees from CSR reporting totals 12,813, relative to 11,558 in the prior year and 8,184 in the year before.


As of the latest fiscal year, there have not been Management Departures, while the prior year saw no departures. Meanwhile, the company experienced no strikes this year, which compares to no strikes in the prior year.


Governance


From a governance standpoint, the company scores favorably, particularly outperforming on the Shareholders Score front, but underperforming on the Management Score front.


The company does not have a Corporate Governance Board Committee, but has a Nomination Board Committee, has an Audit Board Committee, and has a Compensation Board Committee. The company does have a Board Structure Policy and does have a Policy for Board Independence in place. The Board has held four meetings in the last fiscal year, which compares to 4 in the prior year. The Board size currently stands at 12 members based on the latest annual/ESG report.


The Board has an average tenure of 7.1 years, which compares to 6.1 in the prior year. Board diversity stands at 75% for cultural diversity but lacks gender diversity.


The company has implemented a Policy for Executive Compensation Performance but has not tied Executive Compensation to ESG Performance. The company has not implemented a Policy for Executive Retention, and has implemented a Succession Plan, and has implemented an External Consultants policy.


The company has not implemented CEO-Chairman Separation and does have its CEO as a Board member. Its chairman is not an ex-CEO. Board member term duration stands at three years. In total, senior executives' compensation has declined slightly in the latest fiscal year. Notably, the CEO compensation is not linked to total shareholder return. Meanwhile, executive compensation is not linked to long-term objectives. Sustainability compensation incentives have not been implemented. Thus far, there have not been any executive compensation controversies.


Sources:


https://www.csrhub.com/CSR_and_sustainability_information/FAR-EAST-HORIZON-LIMITED


http://www.fehorizon.com/Class_148/Default.aspx

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