ESG Assessments

A comprehensive ESG assessment requires identifying all material ESG risks & evaluating the company’s risk management practices to proactively address these risks. Since every company is exposed to a wide variety of risks & each impacts a company in varying degrees, the evaluation of exposure & scoring has to be done in a structured manner. There must be a hierarchy where individual indicators pertaining to the risk exposure & management can be aggregated to evaluate the performance.

We aggregate the data in three levels, viz: Key Issue, Theme & Category level; each of which is the next level of aggregation for hierarchical risk evaluation.

ESG RISK AI’s ASSESSMENT APPROACH

ESGRisk.ai’s assessment model and report is designed to help investors quickly understand companies’ ESG risk susceptibility & risk management framework, enabling investors to directly integrate ESG factors into their portfolio construction and management.

Methodology

ESGRisk.ai covers a company’s ESG performance across three categories, 19 themes and 35 key issues. The scores are based on a comprehensive assessment of 1000 indicators.

Components of Assessment

Transparency scores

Unique to ESGRisk.ai, this score is based on the company’s disclosure of signals.

Overall Transparency

Number of signals where performance can be ascertained thorough disclosures/ Total Signals

BRSR from FY 2022-23

Number of signal where performance can be ascertained through BRR disclosures / Total disclosures required under BRR

Based on the company’s disclosure of signals, ESGRisk.ai will compute and publish two transparency scores, one will score the level of overall disclosures and the second will score the BRR disclosures relevant largely in the Indian context.