Zip Co. Ltd.
Industry Group: Diversified Financials
Country/Region: Australia
Identifier: ASX:ZIP
Zip Co Ltd is a diversified finance provider, offering consumer financing via a line of credit (via Zip Pay and Zip Money) and instalment-based finance (via QuadPay, Spotii, Twisto, and PayFlex); as well as lending to small to midsize enterprises (via Zip Business). Zip’s fortunes are largely tied to the buy now, pay later, or BNPL, industry. Majority of its products-Zip Pay, QuadPay (Zip U.S.), and PayFlex-do not charge interest based on outstanding balances. Around 60%-70% of Zip Pay’s/Zip Money’s revenue is derived from customers, mainly via account fees and interest. Meanwhile, its installment businesses generates revenue by receiving a margin from merchants, which compensates it for accepting all nonpayment risk and for encouraging consumers to transact more frequently.
ESG Risk Rating
Ranking
Industry Group (1st = lowest risk)
Diversified Financials 277 out of 933
Universe
Global Universe 7138 out of 16216
What are the ESG Risk Ratings?
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Industry Comparison
Company | ESG Risk Rating | Industry Rank |
---|---|---|
Home First Finance Company India Ltd. |
16.2
Low
|
90 out of 933 |
GRENKE AG |
22.9
Medium
|
261 out of 933 |
Zip Co. Ltd. |
23.4
Medium
|
277 out of 933 |
SBFC Finance Ltd. |
26.1
Medium
|
382 out of 933 |
Orient Corp. |
29.8
Medium
|
531 out of 933 |
For corporate professionals interested in direct competitor insights
Sustainalytics' Peer Performance Insights gives an in-depth analysis of your company's ESG strengths and weaknesses compared to your competitors and industry performance. These insights can be used to identify areas of ESG improvement to help inform future management decisions that align with your organization's sustainability goals.
Our Approach to Calculating ESG Risk
The ESG Risk Ratings measure a company's exposure to industry-specific material ESG risks and how well a company is managing those risks.
Exposure
Exposure refers to the extent to which a company is exposed to different material ESG issues. Our exposure score takes into consideration subindustry and company-specific factors such as its business model.
Zip Co. Ltd.'s Exposure is Medium
Management
Management refers to how well a company is managing its relevant ESG issues. Our management score assesses the robustness of a company's ESG programs, practices and policies.
Zip Co. Ltd.'s Management of ESG Material Risk is Average