- The Portuguese airline received an ESG Risk Rating of 24.4 by Morningstar Sustainalytics.
TAP Air Portugal received an ESG Risk Rating of 24.4 and was assessed by Morningstar Sustainalytics to be at medium risk of experiencing material financial impacts from ESG factors. In this assessment, TAP Air Portugal scored better than 92% of the airlines in this index on a global scale, coming in 2nd place out of the 14 European airlines evaluated, and in 6th place out of a total of 71 global airlines evaluated.
The ESG Risk Rating is the result of a combination of the company’s ESG Risk Exposure and ESG Risk Management ratings. TAP Air Portugal overall risk exposure is medium and is similar to subindustry average, while the airline’s overall management of material ESG issues is strong and above the subindustry average.
TAP recognizes the relevance of sustainability as a transversal axis to its performance and its competitive position in the market, defining its strategies with a focus on a responsible and conscious management of the natural and social resources. The TAP approach to sustainability is based on a holistic management model, which considers the importance of the environmental and social dimensions, as well as the need to guarantee the financial resilience of the business.
Morningstar Sustainalytics’ ESG Risk Ratings measure a company’s exposure to industry-specific material ESG risks and how well a company is managing those risks. This multi-dimensional way of measuring ESG risk combines the concepts of management and exposure to arrive at an assessment of ESG risk, i.e.a total unmanaged ESG risk score or the ESG Risk Rating, that is comparable across all industries. Sustainalytics’ ESG Risk Ratings provide a quantitative measure of unmanaged ESG risk and distinguish between five levels of risk: negligible, low, medium, high and severe. Learn more about the ESG Risk Ratings here: www.sustainalytics.com/corporate-solutions/esg-solutions/esg-risk-ratings.