Investment Analyses –

Total System Services, Inc. Ticker TSS Market Value of Investment $98,921.00 Investment Group Student Fixed Income Management Industry Commercial Services and Supplies IVA Rating B Overview Total System Services, Inc. was originally founded in 1982 and is based out of Columbus, Georgia. Total Systems Services provides electronic payment processing services to banks and other financial institutions in the United States, Europe, Canada, Mexico, and internationally. It operates through four segments: North America Services, International Services, Merchant Services, and NetSpend (Yahoo! Finance). Industry Outlook This industry is expected to grow by about 20.51% in the next five years. This is due to its interconnectedness in the financial and banking industries. ESG Related Issues The key issues within the Software and Services Industry and for companies like Total System Services are privacy and data breach controversies according to the MSCI industry report. According to MSCI’s Intangible Value Assessment (IVA) on TSS, energy efficiency and human capital development are the highest ranked of their ESG concerns. TSS has minimal initiatives on plans to curb energy related costs. As of right now, their energy costs are low, but they will continue to rise as data centers and traffic expands (IVA).

Due to the nature of work required, TSS needs a highly skilled workforce. However, the company has recently been lagging behind its industry peers when it comes to employee benefits and engagement programs. It was given a score of 1.3 and the industry average is 3.3.

The ESG concern that that of privacy and security. TSS has a heightened exposure to risks associated with data protection issues. Its security enforcement practices trail the industry leaders. Even though TSS handles substantial quantities of sensitive information, it doesn’t appear as though the company has taken any steps to ensure the installation of comprehensive data privacy systems. It was given a score of 1.1 and the industry average is 4.3.

- Matthew Smalls for the Sustainable Investing Advisory Committee September 2015 References

Total System Services, INC. (TSS) (2015). Profile, business summary. Yahoo!Finance. Retrieved from http://finance.yahoo.com/q/pr?s=TSS+Profile

MSCI Intangible Value Assessment (2015, May), Total System Services, Inc. Retrieved from www.esgoncampus.msci.com