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How environmentally sustainable is the company? What is the external impact on environmental resources?
- Emissions Score: A company’s commitment and effectiveness at reducing environmental emission in its production and operational processes
- Resource Use Score: A company’s performance and capacity to reduce the use of materials, energy or water, and to find more eco-efficient solutions by improving supply chain management
How is the company performing financially? How profitable is it?
- Net Assets: Total assets of the company less its total liabilities
- Free Cash Flow/Employee: A measure of financial performance calculated as operating cash flow minus capital expenditures; the cash a company generates after laying out money to maintain or expand its asset base (this number is normalized by the number of employees in the company)
- Leverage: The net debt of the company divided by EBITDA
- Net debt is a company’s total debt less cash and short-term investments
- EBITDA is earnings before interest and taxes for the fiscal year plus the same period’s depreciation, supplemental, amortization of acquisition costs, supplemental and amortization of intangibles and supplemental
- Operating Income Margin: Represents operating income divided by total revenue
- 3-Year Revenue Growth: 3-year historical revenue growth percentage
- Return On Invested Capital (ROIC): A financial measure quantifying how well a company generates cash flow relative to the capital it has invested in its business; expressed as a percentage and calculated as ROIC = Net Operating Profit – Adjusted Taxes /Invested Capital
How innovative is the company? How much is it investing in R&D and does it protect its inventions with patent rights that are successfully granted?
- Average Patent Grants/Year: The number of granted patents that are issued each year
- Patent Grant/Application Ratio: The ratio of granted patents to patent applications R&D Spend: The amount of money a company is spending on research and development (R&D) annually
- Innovation Score: A company’s capacity to reduce the environmental costs and burdens for its customers and create new market opportunities through environmental technologies and processes or eco-designed products
How litigious is the organization? Does the company live up to its contracts and regulatory obligations?
- Average Litigation/Year: Amount of litigation where the company or subsidiary is a defendant in the areas of environmental, employment, contracts/breaches, torts and negligence
- Product Responsibility Score: A company’s capacity to produce quality goods and services integrating the customer’s health and safety, integrity and data privacy
Management & Investor Confidence
How well run is the company? How much confidence do investors have in it?
- CAM Sector: Quantitative equity alpha models that observe market anomalies and human behaviors to provide investment managers with insight in creating market-beating portfolios, distilling volumes of data to a single score for more than 30,000 stocks daily
- CCR Sector: The current sector-level percentile rank of a company’s one-year default probability distilled down to one final estimate of credit risk at the company level|
- Management Score: A company’s commitment and effectiveness toward following best practice corporate governance principles
- Shareholders Score: A company’s effectiveness toward equal treatment of shareholders and the use of anti-takeover devices
People & Social Responsibility
How well does it treat its employees? How socially responsible is it? What is its impact on external people with whom it is contracted?
- Community Score: A company’s commitment to being a good citizen, protecting public health and respecting business ethics
- CSR Strategy Score: A company’s practices to integrate the economic (financial), social and environmental dimensions into its day-to-day decision making
- Human Rights Score: A company’s effectiveness toward respecting fundamental human rights conventions
- Workforce Score: A company’s effectiveness toward job satisfaction, a healthy and safe workplace, maintaining diversity and equal opportunities, and development opportunities for its workforce
How well-regarded is the organization by the public? What is the overall news sentiment related to the company?
- Overall News Sentiment: The median postiveSentiment and negativeSentiment values for each company over the last year; the overall sentiment is calculated as the (positiveSentiment) - (negativeSentiment)
- Controversies Score: A company’s exposure to environmental, social and governance controversies and negative events reflected in global media
Risk & Resilience
How operationally stable is the company and is it able to withstand shocks and disruptions? How many customers and suppliers does it have? In what countries is it operating?
- Geopolitical Risk: A company’s geographical risk exposure as determined by the countries from which the company derives its revenue, and associating each fraction of that revenue with the risk index of that country
- Number of customers: Number of customers of the company
- Number of suppliers: Number of suppliers of the company
- Supply chain risk: The risk associated with a company’s supply chain, based on the country’s risk indices from which the company’s suppliers derive their revenue; it attempts to quantify the risk of a company’s suppliers and whether they’re deriving their revenue from high-risk or low-risk countries