STOCKHOLM (S&P Global Ratings) Feb. 1, 2023--S&P Global Ratings said today that it has assigned France-based Dassault Systemes SE (3DS) an ESG Evaluation of 84 (on a scale of 1 to 100). Our ESG Evaluation is the result of an ESG profile of 75 combined with a strong (+9) preparedness. Higher numbers indicate stronger sustainability in our evaluations.

The ESG evaluation of 84 reflects our view that 3DS is well placed to accommodate the climate transition and circularity efforts of its clients. It considers 3DS's close management of its own carbon footprint and indirect emissions, as well as its strong workforce management and efforts to increase gender diversity at all levels.

3DS is particularly strong in its engagement with customers benefitting from its unique platform and its ability to adapt solutions to enter new markets. Our assessment also factors that its governance is largely in line with the very high standards of French listed companies, supported by above-average disclosures.

3DS is a French software company (90% of revenue) specialized in 3D product design, simulation, and manufacturing solutions. Its controlling shareholder is the Groupe Industriel Marcel Dassault, with 54% of exercisable voting rights in 2021. Headquartered in Vélizy, France, the company serves more than 300,000 customers in 11 industries worldwide. Its more than 20,000 employees are present in Europe (39%), the Americas (29%), and Asia (32%)

What Is An ESG Evaluation?

S&P Global Ratings' ESG Evaluation is a cross-sector, relative analysis of an entity's capacity to continue to operate successfully. It is grounded in how ESG factors could affect stakeholders, potentially leading to a material direct or indirect financial impact on the entity.

Our definition of stakeholders for a particular entity goes beyond shareholders to include employees, the local community, government, regulators, customers, lenders, borrowers, policyholders, voters, members, and suppliers. A high ESG Evaluation indicates an entity is relatively less prone to experiencing material ESG-related events, and is relatively better positioned to capitalize on ESG-related growth opportunities than entities with lower ESG Evaluations.

First, we establish an ESG profile for a given entity, which assesses the exposure of the entity's operations to observable ESG risks and opportunities, and how the entity is mitigating these risks and capitalizing on these opportunities.

Second, we assess the entity's long-term preparedness, namely its capacity to anticipate and adapt to a variety of long-term plausible disruptions.

S&P Global Ratings currently evaluates more than 175 entities across the globe; they have an average score of 65. Since the first ESG Evaluation, published in June 2019, we have finalized ESG Evaluations across 23 sectors globally. By region, the highest average score is 70, for companies headquartered in Europe, the Middle East, and Africa.

Visit spglobal.com/ratings for our latest sustainable finance research and all of our publicly available ESG Evaluations.

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