The Covalence approach is based on a diversity of sources of information and relies on web monitoring and artificial intelligence together with human analysis.
To produce ESG ratings, we combine a measure of reputation, translating the perception of stakeholders such as the media and NGOs, both positive (endorsements) and negative (controversies), and a disclosure score, based on ESG indicators reported by companies and sourced from an external provider as well as on corporate communications.
Covalence first uses a set of 50 criteria inspired by the Global Reporting Initiative’s sustainability reporting guidelines. These criteria serve to classify the narrative content which is gathered thanks to our semi-automated search process using a broad set of sources.
The data is then recoded with hundreds of topics and sub-topics and organized into 11 dimensions within 3 categories: Environment, Social, Governance, enabling to calculate ESG scores and ratings, as well as a greenwashing risk indicator.
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