Target Market: Institutional investors, portfolio investments
Overview: Provides overarching guidance to evaluate an organization’s operations across three main areas:
- Environmental – Looks at how a company performs as a steward of the natural environment
- Social – Examine how a company manages relationships with its employees, suppliers, customers and the communities where it operates
- Governance – Deals with a company’s leadership, executive pay, audits and internal controls, and shareholder rights.
Data Collection / Measurement Method:
- Companies determine applicable metrics in each main criteria
- Scoring system is determined
- Relevant data is collected
- Report card is produced
Scoring Method: A report card using letter grades (A – F) is constructed to illustrate how well an organization performs in each category. Alternatively, textual analysis of performance in each category can be produced.
- Organizations have to report across all three criteria
- Best practice implementation should reflect industry benchmarks across the metrics