How are our ESG company reports formulated? Which data sources do we use to compile them? Why do some companies seem to have high ratings in a particular area whilst it is commonly known that their business practices demonstrate quite the opposite? Here, our Founder and CEO Wilson Chan answers some of the most common questions about ESG data and our ESG reports.
What ESG data and calculation criteria are the figures in our ESG reports based on?
We review ESG data from 23,000 third-party data outlets (mostly public) spanning over 120 countries.
How has our ESG database project financed?
The company finances itself by providing deeper reports and real-time monitoring services.
Why do companies like Exxon Mobil and Ørsted look positive on their environmental score?
In both cases, this is, unfortunately, the result of green-washing. If you look closely into the report, we indicate markers for this.
For example, Ørsted is legitimately strong in environment markers. However, if you look closely at the amount of negative data there is very little of it compared to all the ESG data points so this is a good thing. Green-washing is both a high-level of offending data yet even over-whelming amounts of positive spin data, you will see this kind of profile a lot with fossil-fuel companies.
What did you take into account for your algorithms/ calculations to come up with the benchmarks?
We use a very high spec model that is trained to read ESG data the same way as a financial analyst (my former background). This helps us determine if the article or paragraph is a supportive or offending piece of data. Think of the report as a full summary and compilation of all google search results for a particular company for its ethical behaviour.
How you are able to understand the exact definition of each company‘s metric as they can be different from one company to another despite addressing the same subject?
To give you an example, the topic of environmental has over 400 markers that allow us pick up subtle differences in certain KPIs. For example, there are about 15 other ways to indicate low-carbon definitions. In the case of UN Sustainability Goals, the indicators are clearly stated in the UN framework for us to use.
What are your most requested ESG reports?
Our most requested ESG company data and reports are:
These are just some of the most common questions we have received about ESG data and our ESG reports. For more information or to ask us anything about our ESG data and our reports you can contact us direct here, and search our ESG company database for free here.