Methodology of assessment of the data and explanation of the model of analyses

Starting from the definition of the banks object of analysis, the next step is to disclose the method of assessment of this sample. Taking into consideration the information gathered by corporations’ websites, it has been analysed a set of variables for create an in-depth knowledge

of them. In order to create a good field of comparison, it has been decided to assess the variables thanks to a binary system:

• The presence of the variable in question is indicated by 1, and the absence is indicated by 0

• The variable Y indicates the Financial Year from which information has been gathered • The variable I OWN is indicated through the percentage of the ownership held by

institutional figures

• The variable FR is indicated by Year or Month

Once assessed and evaluated the banks object of analysis, it is interesting to report the results in order to complete the knowledge about the sample: taking into consideration the total number of the banks analysed and the different State of belonging, it is compelling to expressed in percentage the positive results (expressed by the number 1), thanks to the method of the assessment.

The variables I OWN, FR and FY are excluded from this operation because expressed in a way not adapt for the comparison in percentage.

In this way, it is possible to develop a valid comparison that immediately gives information about the features of the firms.

Once assessed companies’ characteristics, it is fundamental to define the methodology to assess the key indicators about sustainability reporting of the sample. Key Indicators are evaluated based on 4 communication principles:

Principles of Evaluation of Key Indicators Code

Clarity CL

Concreteness CN

Adherence to International Standards (GRI, ISO 26000, OECD, IIRC, UNGC) AIS

Quantity of Information Disclosed QIF

Total Quality of Information Disclosed TQID

Clarity

The principle of Clarity, refers to the capacity of a company to convey a message in a way that allows receivers to interpret and understand that message. Concretely, a personal elaboration and evaluation of the contents related to the Key Indicator in question, based on this principle, generates a personal judgment on the capacity of the company to be clear in conveying the information about the examined KI.

Concreteness

The principle of Concreteness, refers to the capacity of a company to convey a message that should be specific, definite and vivid rather than vague and general. Concretely, a personal elaboration and evaluation of the contents related to the Key Indicator in question, based on this principle, generates a personal judgment on the concrete capacity of the company to transmit the information about the examined KI.

Adherence to International Standards (GRI, ISO 26000, OECD, IIRC, UNGC)

The principle of Adherence to International Standards, refers to the capacity of the company of disclosing information that are in line with guidance or principles promoted by GRI, ISO 26000, OECD, IIRC or OECD. Concretely, a personal elaboration and evaluation of the contents related to the Key Indicator in question, based on this principle, generates a personal judgment on the adherence to International Standard of the company.

Quantity of Information Disclosed

The principle measuring the Quantity of Information Disclosed, measures the effective quantity of information disclosed about the Key Indicator examined.

Total Quality of Information Disclosed

The Total Quality of Information Disclosed is obtained through the mean of the results took by the 4 principles of evaluation: hence, this value represents the landmark to construct the overall personal evaluation of the KI.

The method of analysis consists in an evaluation of the Key Indicators based on the four principles reported above. The evaluation is rated thanks to a scale from 0 to 4.

Description of the rating method Rating scale

Information not disclosed or not available 0

Information disclosed evaluated not sufficiently 1

Information disclosed evaluated sufficiently 2

Information disclosed evaluated in a good way 3

Information disclosed evaluated in a wide way 4

Figure 29. Rating method description table (1). Source: personal elaboration

Concerning the principle assessing the Quantity of information disclosed, the rating system is slightly different, based precisely on the measurement of the quantity of pages dedicated to the disclosure of the information related to the Key Indicators:

Description of the rating method Rating scale

Information not disclosed or not available 0

Information disclosed in less than 1 page 1

Information disclosed in 1 page 2

Information disclosed in 2 pages 3

Information disclosed in more than 2 pages 4

Figure 30. Rating description method table (2). Source: personal elaboration

Once completed the operations of data collection and evaluation, it is fundamental to explain how it is possible to answer to the research question.

First, it is important to specify that among the four Key Pillars, only Environmental, Social and Corporate Governance Performances allow to exploit the methodology of analyses provided in this thesis. The analyses of the Key Indicators belonging to the Economic Performance Pillar, is based directly on a quantitative data collection and for that reason does not allow a qualitative evaluation.

Anyway, the importance of this dimension must be included in the research. In fact, data are collected to allow readers to make a personal comparison of these Key Indicators.