Manila Water tops ESG risk rating in Asia Pacific

MANILA, Philippines — Razon-led Manila Water Co. has improved its ranking in the Environmental, social, and governance (ESG) risk rating of global research and analyses company Sustainalytics, outranking water utilities in Asia Pacific.

Manila Water scored 22.1 in Sustainalytics’ ESG Risk Rating this year, a five-point upgrade from 27.1 in 2022.

According to Sustainalytics, this propelled Manila Water to rank as the top water utility in the Asia Pacific region and ninth among water utility companies worldwide.

The score, however, has kept Manila Water in the medium-risk category.

Manila Water’s management of material ESG issues such as human capital, business ethics, and product governance boosted its ESG score.

The company’s focus on skilled labor, ethical considerations, and client responsibility management has led to this remarkable progress.

The latest rating also highlighted Manila Water’s diligent ESG reporting system and overall management of its material ESG issues, underpinned by board-level oversight of ESG matters, which showcase the company’s commitment to responsible practices.

“With this positive development, the company now has greater momentum in meeting our 2025 ESG targets, which include protecting the environment, helping communities thrive, and building a culture of trust and care,” Manila Water sustainability head Sarah Bergado said in a statement.

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, such as 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.

ESG criteria are a fundamental pillar of Manila Water’s corporate strategy, as outlined in its short-term ESG targets for 2021–2025, demonstrating a proactive approach to sustainable practices.

Last October, the company was also honored as one of this year’s Regional Exemplar Employer of the Year by the Management Association of the Philippines.

The distinction was awarded to companies and organizations that have demonstrated exceptional people management and socially responsible practices that elevate industry standards.

Sustainalytics—a Morningstar Company— is a leading independent ESG and corporate governance research, ratings and analytics firm that supports investors around the world with the development and implementation of responsible investment strategies.

Covering over 16,000 companies globally, Sustainalytics’ ESG Risk Ratings are designed to help investors identify and understand financially material ESG risks and how they might affect the long-term performance for investments.