Oddo Securities ESG Integration Case Solution

British Telecom has reported satisfactory financial performance where profitability indicator is healthy and showing improvement during last three years. The gross margin of the company has improved from 45.5% in 2006 to 55.9% in 2007 on account of effective cost-cutting measures taken by the company. The direct cost of the company is under control even with the increase in revenues the cost remains stable. However, the operating expenses have increased substantially during 2008 from 45.5% in 2007 to 55.9% in 2008 which requires the immediate attention of the management. As a result of a surge in operating expenses, the NOPAT margins have taken a hit and reduced to only 2.4% in 2008 as opposed to 11.6% in 2008. 

2. Compare British Telecom's and France Telecom's ESG Performance.

France telecom has a total ESG score of 53.8 as compared to British Telecom which has scored 74.1 considerably higher than France Telecom. France telecom lags behind in the installation of the environmental management system, its products and services have relatedly high impact on the environment and also has more risk of exposure to electromagnetic waves. Moreover, British Telecom has strong compliance with environmental regulations, more established intellectual capital including human resources, organizational, and ecosystems. This shows that British Telecom has satisfactory performance sustainability and societal impact of an investment in the business. In addition, the company has also shown more compliance to the social aspect of ESG. France Telecom has shown lower commitment in regards to sustainability development strategy & corporate governance & business ethics thereby achieving a lower score of 21.5 as compared to 31.3 of British Telecom.